Crypto Industry News:
As Ethereum founder Vitalik Buterin said, the Canadian government's efforts to throttle the flow of funds for protesting truck drivers in Canada illustrate why cryptocurrencies exist.
In an interview at the ETH conference, Buterin, who grew up in Canada, disapproved of the "freedom convoys" that have protested in Ottawa over the past week against COVID-19 restrictions:
"Truckers block roads and it spoils the economy. Okay, blocking roads is illegal and there are laws that should apply," he said.
However, he described the government's actions as harsh and cryptocurrency as potential control over such excessive reach:
"If the government doesn't want to obey the law ... [and] give people a chance to defend themselves ... and they just want to talk to banks and essentially cut people's livelihoods without due process, these are examples decentralized technology is going to make it harder," said Buterin.
Last week, the government of Prime Minister Justin Trudeau invoked rarely used emergency powers to quell the protests. Banks and other financial service providers have been required to freeze or suspend trucker-related accounts without a court order.
Supporters of the protesters tried to circumvent the blockades by collecting donations in cryptocurrencies. The government blacklisted several cryptographic addresses related to these events, and the court ordered the funds to be frozen pending a class action lawsuit. It remains to be seen how effective these measures will be as crypto transactions cannot be vetoed and wallets are controlled by whoever holds the private crypto keys.
Technical Market Outlook
The ETH/USD pair has retraced 127% Fibonacci extension level seen at $2,613 after it broke out below the key short-term technical support located at $2,816. At the end of the move down, at the level of $2,754 the Bearish Engulfing candlestick pattern was made and the market has bounced. The bulls are approaching the level of $2,816 again, but the momentum is still weak and negative.
Weekly Pivot Points:
WR3 - $3,521
WR2 - $3,347
WR1 - $2,888
Weekly Pivot - $2,742
WS1 - $2,272
WS2 - $2,129
WS3 - $1,665
Trading Outlook:
The market is bouncing after over the 50% retracement made since the ATH at the level of $4,868 was made. The level of $3,436 is the next key technical resistance for bulls. On the other hand, the next long-term technical support is located at $1,721 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term.
