Crypto Industry News:
In a recent report, the Central Bank of Russia called for a complete ban on cryptocurrency trading and mining.
The report, entitled "Cryptocurrencies: Trends, Risks, Measures" compares cryptocurrencies with the Ponzi scheme and calls for a complete ban on their use across Russia. The authors say that cryptocurrencies are highly volatile and used as a tool for illegal activities. The report also warned that cryptocurrencies could pose a threat to financial sovereignty and could help people withdraw money from the national economy.
"The potential risks to financial stability associated with cryptocurrencies are much higher in emerging markets, including Russia."
The Russian central bank has demanded a complete ban on over-the-counter (OTC), crypto, and peer-to-peer exchanges. The report also called for a strengthening of the cryptocurrency payment ban and a severe penalty for any violations.
A central bank report further proposes a complete ban on cryptocurrency mining in the country, claiming that the mining activity is driving a demand for other crypto services such as exchanges. Cryptocurrency mining could undermine the existing green energy program as well as disrupt Russia's energy supply:
"Cryptocurrency mining generates unproductive electricity expenditure that undermines the energy supply of residential buildings, social infrastructure and industrial facilities, as well as the environmental agenda of the Russian Federation."
Russia has become the third largest Bitcoin mining center following a cryptocurrency mining ban in China introduced in May. If the latest proposal to ban cryptocurrency mining is implemented, it may lead to another change on the world map of cryptocurrency mining.
The report is in the form of an invitation to public discussion, with the deadline for submitting comments and suggestions from interested parties on March 1, 2022.
Technical Market Outlook
The ETH/USD pair has broken below the key psychological level of $3,000 and made a new swing low at the level of $2,806 (at the time of writing the article). The momentum is below the level of fifty and the same situation is with the stochastic oscillator - the market is trending down in the oversold conditions. The market participants await the event that will trigger the up move again before the price will hit the key long term technical support seen at the level of $2,644. The nearest technical resistance is seen at the level of $2,930, $3,046 and the key short-term technical resistance is seen at $3,185 and $3,275.
Weekly Pivot Points:
WR3 - $4,051
WR2 - $3,728
WR1 - $3,566
Weekly Pivot - $3,237
WS1 - $3,077
WS2 - $2,765
WS3 - $2,585
Trading Outlook:
The WXYXZ complex corrective cycle might soon be terminated, so the next long-term target for ETH is seen at the level of $5,000. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,644. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term retracement level for bulls.
