FX.co ★ Technical Analysis of ETH/USD for September 20, 2021

Crypto Industry news:

The Bank of Russia remains skeptical about acquiring cryptocurrencies and will not support expanding access to these markets for Russian investors, bank vice president Sergei Shvetsov said this week.

Speaking at the international banking forum "Banks of Russia - 21st Century", the official explained:

"When it comes to buying cryptocurrency for investment purposes, we are skeptical about this idea. We believe that this idea is different from traditional assets, it is very risky and has the hallmarks of a pyramid."

Shvetsov reiterated the central bank's "clear position" that the only means of payment in the Russian Federation was "the ruble in all its forms, and not some kind of monetary surrogate or foreign currency." Financial authorities are gearing up to launch the ruble's digital prototype by the end of the year and hope CBDC will help reduce cryptocurrency use in Russia.

At the event in Sochi, Shvetsov said the Bank of Russia is working with commercial banks to delay payments sent to cryptocurrency exchanges. CBR recently advised banks to block cards and wallets used for crypto transactions. The goal is to reduce the chances of impulsive purchases of crypto assets, noted the deputy chief of the regulator.

Technical Market Outlook

After the false breakout above the supply zone located between the levels of $3,552 - $3,596 the ETH/USD reversed over the weekend and is moving lower towards the level of $3,000. The nearest technical support is seen at $3,185 and $3,122. Any violation of the level of $3,053 would likely open the road to lower levels and the downwards momentum might increase then even more. The weak and negative momentum supports the short-term bearish outlook for ETH.

Weekly Pivot Points:

WR3 - $4,190

WR2 - $3,923

WR1 - $3,621

Weekly Pivot - $3,349

WS1 - $3,067

WS2 - $2,787

WS3 - $2,498

Trading Outlook:

Ethereum have started the next wave up and violated the long-term target at the level of $3,550. The next long-term target for ETH is seen at the level of $4,394. Nevertheless, in order to continue the long-term up trend, the price can not break below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls.