Technical Analysis of ETH/USD for November 4, 2020

Crypto Industry Outlook:

Cryptocurrencies will now be subject to new regulations in Hong Kong as the Securities and Futures Commission (SFC) suggested banning retail investors from trading cryptocurrencies. The new regulations are also aimed at forcing Hong Kong's cryptocurrency exchanges to obtain a license.

At a Hong Kong Fintech event on Tuesday, SFC CEO Ashley Alder said the Hong Kong government will establish a "new licensing system" under the anti-money laundering regulation for platforms that trade "any type of crypto asset even if they are not classified as securities. "

Exactly a year ago, the SFC introduced regulations for cryptocurrency exchanges to approve licensing, but this framework applied to platforms that offered at least one cryptocurrency that was legally recognized as securities. However, according to reports, an official said in a statement on Tuesday:

"In the current legal framework, if a platform operator is genuinely determined to operate completely outside the regulatory radar, it can do so simply by making sure that its traded crypto assets do not fall under the legal definition of a security."

The Hong Kong government even planned to introduce a consultation document to gather views on proposed new cryptocurrency laws. In addition, the new rules have provided investors with better protection by fighting fraud and money laundering, according to financial services and treasury secretary Christopher Hui Ching-yu.

Technical Market Outlook:

The ETH/USD pair has bounced to the middle of the range after a new local low had been made at the level of $369.57. There is a Pin Bar candle made at the end of the up move, so the bearish pressure intensify around the level of $389.90. The momentum is now weak and negative, which indicates a possibility of another wave down towards the level of $362.60 and $355.60. If a daily candle closes below $360 level, then the bears will have full control of the market.

Weekly Pivot Points:

WR3 - $456.03

WR2 - $431.91

WR1 - $415.05

Weekly Pivot - $393.33

WS1 - $376.79

WS2 - $355.02

WS3 - $337.80

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $500, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $309.61 is broken.

The material has been provided by InstaForex Company - www.instaforex.com