Technical Analysis of ETH/USD for October 20, 2020

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Technical Analysis of ETH/USD for October 20, 2020

Technical Analysis of ETH/USD for October 20, 2020

Crypto Industry News:

The Korean Blockchain Association has called for the government’s plan to introduce a 20% tax on cryptocurrency trading to be delayed for another two years.

According to a media report, the Korea Blockchain Association, or KBA, is asking regulators to postpone the South Korean government’s implementation of its long-awaited new tax strategy by January 1, 2023.

The KBA does not explicitly state that this is against a 20% tax rate, but has said cryptocurrency exchanges and industry companies need a “reasonable period” to prepare for the Income Tax Act.

One of the reasons for the delay is the short period between the regulations of the old tax system and the start of the new one. Cryptocurrency exchanges will be able to report transactions covered by the previous tax code by the end of September 2021. However, KBA argues that since the Ministry of Economy and Finance of Korea has specified a revised code to be enforced from October 1, 2021, it would be difficult to comply with the new regulations in potentially less than 24 hours.

The chairman of the Korea Blockchain Association, Oh Gap-soo, suggested that since the government has become involved in taxing digital assets for the first time, a temporary tax code suspension may be necessary. Regulators may not immediately accept reports from crypto companies, leading to uncertainty as to whether they will be able to continue operating in October.

Technical Market Outlook:

The ETH/USD pair has extended the retracement towards the level of 61% located at $381.85. The target for bulls is still seen at the level of $400, but for now the market pulled back towards the intraday support at $375.52 and is consolidating the recent gains. The nearest technical resistance is seen at the level of $389.90 and at the swing top at $394.95. On the other hand, the target for bears is seen at the level of $360.60 and $355.60 and the nearest technical support is seen at the level of $369.37.

Weekly Pivot Points:

WR3 – $424.52

WR2 – $408.88

WR1 – $391.97

Weekly Pivot – $376.47

WS1 – $357.63

WS2 – $341.22

WS3 – $328.22

Trading Recommendations:

The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. Moreover, bulls had bounced from the weekly trend line support last week and now are away from it. The key mid-term technical support is currently seen at the level of $305.20 – $321.95, so all the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500.

Technical Analysis of ETH/USD for October 20, 2020

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

Source : https://www.mt5.com/forex_analysis/quickview/192095/