FX.co ★ Technical Analysis of ETH/USD for December 17, 2021

Crypto Industry News:

Gita Gopinath, chief economist of the International Monetary Fund (IMF), has called for a global policy to regulate cryptocurrencies rather than ban them.

Advocating global politics, Gopinath, who will soon become Deputy Managing Director of the IMF, argued that if countries banned cryptocurrencies, they would have no control over foreign exchanges that are not subject to their country's laws, which could result in them being completely ignored.

"There are challenges to banning them, whether or not it is really possible to ban cryptocurrencies, as many exchanges are overseas and not regulated in a given country," Gopinath said at an event hosted by the National Council of Applied Economic Research.

Gita's observations come as nations around the world wonder how to control cryptocurrencies. According to September reports, the People's Bank of China officially unveiled a series of new measures to combat cryptocurrency adoption in China, including strengthening inter-departmental collaboration to suppress cryptocurrency activity. Earlier this month, the Russian central bank officially banned mutual funds from investing in Bitcoin.

Technical Market Outlook

The ETH/USD pair has bounced from the low located at the level of $3,666. The bulls had manage to made a local high located at the level of $4,114, but in order to extend the bounce, bulls need to test and break through the short-term trend line resistance located at the level of $4,300 and head towards the level of $4,435. For now, a 50% of the yesterday's move up had been lost and in a case of a further move down, the next target is seen at the level of $3,677 and even at the swing low at the level of $3,438.

Weekly Pivot Points:

WR3 - $4,978

WR2 - $4,721

WR1 - $4,397

Weekly Pivot - $4,163

WS1 - $3,831

WS2 - $3,582

WS3 - $3,258

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.