Technical analysis of Ethereum for 23.05.2019

Crypto Industry News:

According to TASS, the Central Bank of Russia believes that the bill regulating cryptocurrencies is sufficiently prepared to be adopted in spring 2019.

Olga Skorobogatova, the first deputy governor of the Russian central bank, said that the bank expects the adoption of the "On Financial Financial Assets" (DFA) cryptographic act during the spring session in 2019 in line with the order of President Vladimir Putin.

Speaking at a recent parliamentary meeting, Skorobogatova argued that DFA, as well as the bill on crowdfunding and other cryptographic accounts, were "sufficiently prepared" to be adopted during the session. She also stressed that all bills are "crucial for the country and will allow the implementation of new projects". In turn, the Russian prime minister and former president Dmitry Medvedev recently said that cryptographic regulation is not a priority for the Russian authorities, because the crypto "lost its popularity".

Yesterday, the chairman of the Financial Market Committee in the Russian parliament revealed that the Russian authorities had to postpone the second reading of DFA due to the commission of the Financial Action Task Force on Money Laundering (FATF).

While the FATF obliged Russia to set up major industry terms such as "cryptocurrencies" and "Bitcoin", the Russian central bank allegedly influenced lawmakers to avoid taking into account certain deadlines in the bill.

Technical Market Overview:

The ETH/USD pair has broken below the short-term trend line support around the level of $240 and made a new local low on its way down at the level of $235.63 The next technical support is seen at the level of $226.17. .After the corrective cycle in wave 4 is completed, there is still one more wave up missing in order to complete the whole impulsive wave.

Weekly Pivot Points:

WR3 - $390.48

WR2- $336.28

WR1 - $299.99

Weekly Pivot - $239.34

WS1 - $205.35

WS2 - $147.46

WS3 - $113.47

Trading Recommendations:

The best trading strategy in the current market conditions is to buy the local pull-back as wave 4 is in progress in anticipation of the wave 5 to the upside. It might take some time for the wave 4 to complete, so it does not have to be a day-trading strategy. Please pay attention to the technical support at the level of $226.17 as any violation of this level will accelerate the sell-off towards the next technical support at the level of $212.12.