Crypto Industry News:
The UK's Financial Conduct Authority (FCA) crypto licensing system is proving a pain for cryptocurrency companies looking to operate in the country.
According to a press report, the number of discontinued crypto licensing applications increased by more than 25% on Tuesday.
Indeed, the media reported earlier this month that 51 crypto companies had withdrawn previously filed applications for FCA registration. A regulator spokesman quoted by Reuters said 13 more companies have pulled out of the trial, making a total of 64 canceled applications.
Since January 2020, the FCA has been overseeing anti-money laundering compliance in the domestic crypto sector. At that time, the agency established a registration system for cryptocurrency companies.
However, the FCA was forced to set up and extend an interim registration system due to a backlog of license applications.
Coming out of this process, these companies must stop all cryptocurrency activities. Otherwise, they will face fines and legal action from the FCA. However, some entities that are not covered by an anti-money laundering agency mandate may still offer services.
Technical Market Outlook:
The ETH/USD pair has broken above the 50% Fibonacci retracement at the level of $2,173 and keeps going higher. The last high was made at the level of $2,242. The next target for bulls is seen at $2,256 (technical resistance) and $2,282 (61% Fibonacci retracement of the last wave down). The nearest technical support is seen at the level of $2,043. The momentum is strong and positive, which supports the short term bullish outlook for ETH.
Weekly Pivot Points:
WR3 - $2,667
WR2 - $2,446
WR1 - $2,091
Weekly Pivot - $1,898
WS1 - $1,514
WS2 - $1,323
WS3 - $946
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.
