FX.co ★ Technical Analysis of ETH/USD for October 26, 2021

Crypto Industry News:

Despite Russia's adoption of the first cryptocurrency law in January 2021, the country's cryptocurrency market is still largely unregulated and associated with a lot of uncertainty, according to a local industry supporter.

Yuri Prypaczkin, head of the Russian Association of Cryptoindustry and Blockchain (RACIB), argued that the existing Russian cryptocurrency laws are nothing more than "half measures" that have nothing to do with system solutions.

In an interview with a local news agency, Prypachkin referred to Russian President Vladimir Putin, who has issued multiple cryptocurrency regulations over the past four years. The director stressed that the total cryptocurrency market capitalization has risen from around $ 200 billion in 2017 to the current $ 2.7 trillion, but local lawmakers have essentially done nothing to capture this value.

"Russia has done absolutely nothing to regulate the local cryptocurrency market, which accounts for 10% of the global cryptocurrency market," Pripachkin said.

He added that the size of the Russian cryptocurrency market is comparable to the annual federal budget revenue of $ 270 billion.

Pripachkin argued that Russia's Digital Financial Assets Act provides the legal basis for crypto in a broad sense, but does not define major industry terms such as smart contracts, nor does it regulate activities such as mining, issuing and taxing cryptocurrencies.

Technical Market Outlook

The ETH/USD pair had bounced from the technical support seen at the level of $3,971 and tested the local technical resistance seen at $4,243. There was no breakout to the upside yet as the next target for bulls is seen at the last ATH located at $4,369 and above. The positive momentum supports the short-term bullish outlook for ETH and the larger time frame trend is still up.

Weekly Pivot Points:

WR3 - $5,099

WR2 - $4,706

WR1 - $4,412

Weekly Pivot - $4,017

WS1 - $3,701

WS2 - $3,313

WS3 - $2,969

Trading Outlook:

The next long-term target for ETH is seen at the level of $5,000. 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. The level of $3,677 is the key mid-term technical support for bulls.