Crypto Industry News:
According to Shanghai Securities News, the Shenzhen branch of the People's Bank of China closed 11 entities operating cryptocurrency exchanges and enabling cross-border stock trading services.
The report quoted PBOC whose representatives said they had "cleared" the market of cryptocurrency exchanges that are believed to be operating illegally in the country. Stock exchanges allegedly violated currency exchange rules and operated cryptocurrency-based services despite a nationwide ban.
A similar incident happened in July. The Chinese central bank then ordered the termination of the Beijing software vendor Beijing Qudao Cultural Development Co Ltd for providing cryptocurrency trading services.
It is worth recalling that cryptocurrency exchanges cannot operate in China, and financial and payment companies have been prohibited from providing services that have anything to do with them. The authorities, however, do not prohibit private individuals from owning cryptocurrencies.
While the PBOC did not disclose the names of the affected companies, it is speculated that one of the targets was a "well-known national finance website".
Technical Market Outlook:
The ETH/USD pair has bounced from the technical support located at $2,977 and is testing the lower channel line from the downside. If there is a breakout above the channel line, then the bulls are back inside the main ascending channel, so the corrective pull-back is done. The next target for bulls is seen at the levels of $3,274 and $3,337. The strong and positive momentum supports the short-term bullish outlook for ETH.
Weekly Pivot Points:
WR3 - $3,888
WR2 - $3,615
WR1 - $3,448
Weekly Pivot - $3,162
WS1 - $3,024
WS2 - $2,746
WS3 - $2,578
Trading Outlook:
Ethereum have started the next wave up and violated the long-term target at the level of $3,000. The next long-term target for ETH is seen at the level of $4,394. Nevertheless, in order to continue the long-term up trend, the price can not break below the technical support at the level of $2,695. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls.
