FX.co ★ Technical Analysis of ETH/USD for October 18, 2021

Crypto Industry News:

The President of Mexico gave his views on Bitcoin and cryptocurrencies earlier this week. At a press conference at the National Palace, Lopez Obrador denied having any interest in adopting Bitcoin as legal tender, as did El Salvador earlier this year. When asked by a journalist about the case, he stated:

"No. We will not change in this respect. We consider it appropriate to be orthodoxy in financial management. We will not try to introduce many innovations in the financial system."

The statement is in line with Mexico's position to date on cryptocurrencies. On the other hand, Lopez Obrador stated that he would pay particular attention to the tax situation in the country, ensuring that tax collection proceeds normally, without tax evasion.

Technical Market Outlook:

The ETH/USD pair has bounced from the technical support located at the level of $3,677 and is heading towards the level of $4,000 again. This might be the last wave in the impulsive cycle, the wave 5 of the overall wave progression, so a some kind of correction might be expected soon. The momentum is strong and positive, so the bulls might risk to push the prices towards the level of $4,000 before any meaningful correction will occur.

Weekly Pivot Points:

WR3 - $4,596

WR2 - $4,262

WR1 - $3,971

Weekly Pivot - $3,631

WS1 - $3,394

WS2 - $3,073

WS3 - $2,777

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.