FX.co ★ Technical Analysis of ETH/USD for October 12, 2021

Crypto Industry News:

Lawmakers belonging to the South Korean opposition People Power Party have prepared a new challenge for the planned cryptocurrency tax law. They are in favor of a one-year extension of the start of cryptocurrency taxation in this country.

According to earlier reports, the South Korean tax system will enter into force in 2022, which will impose a 20% fee on cryptocurrency profits exceeding $ 2,100.

In addition to the one-year delay, lawmakers are also pushing for a multi-level cryptocurrency tax levy that is in line with the financial investment income tax system to be implemented in 2023.

Under the legislative proposal, instead of the government's flat rate of 20% on profits above $ 2,100, lawmakers suggested 20% on profits from $ 42,000 to $ 251,000 and 25% on profits above $ 251,000.

Commenting on the need to reduce the burden on crypto investors, the representative of Cho Myoung-hee argued that the tax system for cryptocurrencies should be in line with the national income tax on financial investments.

The People Power Party's challenge to the cryptocurrency tax bill coincides with a similar action taken by lawmakers belonging to the ruling Democratic Party in September. However, an agreement between lawmakers and the country's finance minister reportedly put an end to any plans to delay the entry into force of the cryptocurrency tax law.

Technical Market Outlook:

The ETH/USD had pulled-back towards the technical support located at the level of $3,385, but is still trading under the short-term trend line resistance located around $3,600. There is a clear Bullish Engulfing pattern at the end of the last pull-back, so the bulls are back in control of the market. The next target is located at $3,677 and then at $3,830. The momentum is back into the positive zone, but is not that strong yet, so a more complex and time-consuming correction in a potential wave 4 is still possible.

Weekly Pivot Points:

WR3 - $4,097

WR2 - $3,885

WR1 - $3,704

Weekly Pivot - $3,473

WS1 - $3,298

WS2 - $3,083

WS3 - $2,876

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 close 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.