FX.co ★ Technical Analysis of ETH/USD for December 8, 2021

Crypto Industry News:

The government of Gibraltar has launched a pilot program to use blockchain technology to store official credentials in its systems.

In Tuesday's announcement, the government announced that it has partnered with the Mexican cryptocurrency exchange Bitso and IOVlabs, a start-up that is developing Bitcoin blockchain-based financial solutions to integrate the technology into the eGov system. The initial phase of integration will allow users to store state-issued and certified credentials on their servers to provide residents with better access to public services.

According to Albert Isola, Gibraltar's minister for digital and financial services, officials have already started digitizing government services on the RSK's smart contract network, and plan to intensify integration work in early 2022. He added that Bitso will contribute $ 500,000 in Bitcoin to the project, or about 9 BTC for $ 55,000.

The Gibraltar Financial Services Commission recently gave the go-ahead to crypto companies looking to do business in the UK, including the local Huobi Group Huobi Gibraltar spot trading service and Bullish Limited, a Block.one affiliate. It appears that many companies operating in this area perceive the territory as a more favorable regulatory environment.

Technical Market Outlook

The ETH/USD pair continues to move up and had broken through the trend line resistance seen around the level of $4,300 and made a new local high at the level of $4,430. The next technical resistance is located at $4,435 and $4,557. The immediate technical support is seen at $4,257. Despite the recent complex and time consuming corrective decline in form of ABCxABC pattern, the larger time frame trend remains up. The H4 time frame RSI indicator is showing an increase in momentum above the neutral level of fifty, which supports the short-term bullish outlook for ETH.

Weekly Pivot Points:

WR3 - $6,154

WR2 - $5,472

WR1 - $4,817

Weekly Pivot - $4,100

WS1 - $3,475

WS2 - $2,785

WS3 - $2,131

Trading Outlook:

The ABCxABC complex corrective cycle might be terminated, so 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.