Crypto Industry News:
Argentina's Central Bank (BCRA) banned financial institutions offering cryptocurrency trading just days after two of the country's largest banks signaled they were opening up to digital assets.
The BCRA announced that the move was intended to mitigate the risks crypto poses to users and "to the financial system as a whole", citing crypto's high volatility, money laundering use, and lack of regulatory safeguards.
The news came shortly after the two largest banks in the country, Banco Galicia and Brubank, announced that they would allow their clients to buy Bitcoin, Ether, USD Coin, and XRP.
The decision to open crypto trading was made after a poll by Banco Galicia in which 60% of respondents said they wanted easier access to digital currencies.
The central bank has long been reluctant to cryptocurrencies, warning the public in advance of the risks, re-warning of concerns about volatility and money laundering, even though the bank says it does not yet show signs of "significant levels of acceptance and use."
According to data from Statista, 21% of respondents in Argentina owned or used cryptocurrencies in 2021, the sixth-highest adoption rate in the world and the highest in the Americas.
Inflation in Argentina rose another 6.7% in March, according to the national statistical agency INDEC. This is the highest rate in 20 years, reaching 55.1% year on year. Some Argentines have turned to cryptocurrencies in an attempt to hedge against rising inflation.
Technical Market Outlook:
The ETH/USD pair has been moving down all weekend long and made a new swing low at the level of $2,423 (at the time of writing the analysis). The nearest technical resistance is seen at $2,5-3 and $2,634 and the immediate technical support is located at $2,444 and $2,303. The weak and negative momentum supports the short-term bearish outlook with a new target for bears seen at the level of $2,303. The market keeps making lower lows and lower highs on the H4 time frame chart, so the down trend is intact.
Weekly Pivot Points:
WR3 - $3,235
WR2 - $3,103
WR1 - $2,780
Weekly Pivot - $2,614
WS1 - $2,276
WS2 - $2,128
WS3 - $1,807
Trading Outlook:
The down trend on the H4, Daily and Weekly time frames had broken below the key long term technical support seen at the level of $2,646 and continues to make new lower lows with no problems whatsoever. So far every bounce and attempt to rally is being used to sell Ethereum for a better price by the market participants, so the bearish pressure is still high.
