Crypto Industry News:
President Joe Biden nominated Brian Nelson as Undersecretary in the US Treasury Department. This is for a position in the terrorism and financial crime unit.
If the nomination is confirmed, Brian Nelson announces the implementation of a legal act containing regulations related to cryptocurrencies.
The purpose of the announced changes is to counteract money laundering, with the subject of cryptocurrencies being treated as a priority. The nominee admitted that the Anti-Money Laundering Act of 2020, which the US Congress passed this year, would give the authorities the ability to regulate any currency, regardless of its form. The potential undersecretary in the US Treasury Department confirmed that "his priority will be the implementation of this legal act along with cryptocurrency regulations":
The new regulations would allow transactions made with the use of digital currencies and other assets to be brought under the provisions related to counteracting money laundering and terrorist financing. Additionally, last month, the government instructed cryptocurrency exchanges to report all transactions for amounts exceeding $ 10,000 to the Internal Revenue Service (the IRS is nothing more than the US tax office).
Technical Market Outlook:
The ETH/USD pair has reversed towards the local technical support located at $1,887 after a failed bounce towards the technical resistance seen at $2,102. The recent price action looks like a V-shape reversal price pattern, nevertheless the bulls were capped at the level of $2,043 and the Pin Bars are being made just below the 38% Fibonacci retracement at $2,064. The nearest technical resistance is seen at the level of $2,102 and this level must be violated in order to continue the bounce, otherwise the odds for the corrective cycle to resume are high.
Weekly Pivot Points:
WR3 - $3,146
WR2 - $2,878
WR1 - $2,557
Weekly Pivot - $2,297
WS1 - $1,962
WS2 - $1,702
WS3 - $1,348
Trading Recommendations:
Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.
