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Technical Analysis of ETH/USD for June 17, 2022

Relevance up to 01:00 2022-06-18 UTC–4

Crypto Industry News:

It is too early to speculate whether or not Brazil is following El Salvador’s footsteps. However, the latest proposal shows that the country is pushing for significant regulation of the crypto industry as adoption reaches its decisive stage.

The latest bill, presented by federal deputy Paulo Martins, aims to add Bitcoin and other cryptocurrencies as payment methods.

The detailed legislative proposal complements the law in force in the country. The project will not necessarily become legal tender in the country, but it will help to use this asset class for different purposes. These include a means of exchange, payment or an instrument for accessing goods and services, as well as investment.

The bill was sent to lawmakers, who will now hold discussions before the amendments are passed by the Senate and signed by the president.

Emphasis will also be placed on protecting users’ private keys as well as providing new permissions and restrictions. Brazilian courts would have them if crypto was found to be a financial asset. This includes activities such as freezing stock accounts.

“If the debtor’s property is not located, the creditor may ask the court to issue a letter to intermediaries involved in cryptocurrency operations. The purpose of such action is to block assets corresponding to the realized value” – the draft reads.

Brazil is the hottest cryptocurrency market in the region, with the government working on a law that could be passed at the turn of the year.

Technical Market Outlook:

The ETH/USD pair had found a temporary support at the level of $1,070, but the market is under the bearish pressure and the next target for bears is seen at the level of $1,000 or below. Currently, the relief bounce had been terminated around the level of $1,265 (local high) after the Pin Bar candlestick formation was made at the H4 time frame chart. The bears want now to test the swing low located at the level of $1,008. The nearest technical resistance is located at $1,233, but in order to change the sentiment to more bullish, the market must break through the level of $1,729 again.

Weekly Pivot Points:

WR3 – $2,216

WR2 – $2,047

WR1 – $1,722

Weekly Pivot – $1,562

WS2 – $1,054

WS3 – $747

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames had broken below the key long term technical support seen at the level of $1,729 and bears continue to make new lower lows with no problem whatsoever. So far every bounce and attempt to rally is being used to sell Ethereum for a better price by the market participants, so the bearish pressure is still high. The next target for bears is located at the level of $1,000.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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