FX.co ★ Technical Analysis of ETH/USD for June 11, 2021

Crypto Industry News:

After the president of El Salvador announced that bitcoin was adopted as legal tender, the Indian Securities and Exchange Board of India (SEBI) intends to reconsider the current cryptocurrency ban and initiate cryptocurrency regulation oversight processes.

India's top cryptocurrency industry leaders are negotiating with the finance ministry on a new set of regulatory rules, and the ministry is now looking at it.

According to the cited source, the new bill on the regulation of cryptocurrencies will probably be discussed by parliament for discussion during the monsoon season, i.e. between June and October this year.

Reserve Bank of India (RBI) again banned lenders from working with companies whose activities are related to virtual currencies - mainly crypto exchanges due to the high volatility of cryptocurrency prices.

However, El Salvador legalizing bitcoin as a tender and other Latin American countries that wish to follow suit may have prompted Indian regulators to consider changing their stance.

Technical Market Outlook:

The ETH/USD has been capped at the 50% Fibonacci retracement seen at the level of $2,575. The immediate technical resistance is seen at the level of $2,639, but the bears are still pushing the prices lower. As long as the price is still under the level of $2,914, the bears are still in full control of the market and the next target for bears is seen at the level of $1,729, $1,633 and $1,544. The nearest technical support is still seen at the level of $2,201.

Weekly Pivot Points:

WR3 - $3,628

WR2 - $3,236

WR1 - $2,995

Weekly Pivot - $2,426

WS1 - $2,383

WS2 - $2,000

WS3 - $1,765

Trading Recommendations:

Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.