FX.co ★ Technical Analysis of ETH/USD for April 1, 2021

Crypto Industry News:

It may take some time for the European Union to issue the digital currency of the central bank, if it ever does.

In the TV interview, the President of the European Central Bank, Christine Lagarde, outlined the complex decision-making process by which the bank will define the future of the digital Euro.

The ECB will soon publish an analysis of the 8,000 responses received through the digital consultation process on the Euro.

"This will be communicated to the European Parliament, which is one of the key players, as well as to the Commission and the Council with whom we are working," she said.

Based on these consultations, in parallel with parliamentary work, the Governing Council of the ECB will decide by mid-2021 whether the institution will start experimenting with CBDC. After an initial phase of experiments, the council would then carry out a six-month or year-long assessment on whether to introduce digital euros, Lagarde said.

"The whole process - let's be realistic - I think it will take another four years, maybe a little more. But I hope we can keep it within four years. Because it's a technical undertaking, and also a fundamental change, because we need to make sure that we do it right. We owe it to Europeans, they have to feel safe. They need to know that they have a central bank-backed [...] counterpart of a digital banknote. [...] We need to make sure we don't break any system, but we'll improve it. Lagarde said.

Technical Market Outlook:

The ETH/USD pair has hit a new all time high at the level of $1,945.90 and keeps going higher. The next target for bulls is seen at the level of 161% Fibonacci extension located at $1,963. The immediate technical support is seen at the level of $1,811, but for now the market made an intraday low at the level of $1,786. The strong and positive momentum supports the short-term bullish outlook for ETH with a longer-term target at $2,000.

Weekly Pivot Points:

WR3 - $2,053

WR2 - $1,922

WR1 - $1,793

Weekly Pivot - $1,670

WS1 - $1,525

WS2 - $1,400

WS3 - $1,267

Trading Recommendations:

The longer term up trend on the Ethereum continues despite the local counter-trend corrections. When the correction is terminated, the next long term target for ETH/USD is seen at the level of $2,100. The key long term technical support is seen at the level of $1,412, so only a weekly candle close below this level will invalidate the bullish scenario.