Ethereum trades at the lower limit of the consolidation range
New cryptocurrency regulations for the German financial institutions
Cryptocurrencies are trying to recover from recent weakness this week. While Bitcoin plunged to around $6500 earlier this week, it has managed to recover since and is trading near $7500 handle at press time. In turn, Bitcoin is on course to report a weekly gain after 4 straight weeks of declines. Other digital assets are following the lead of the most famous cryptocurrency and are trading higher as well.
Ethereum trades at the lower limit of the earlier-broken consolidation range. Following a break below the trading range, that coincided with the declines on the Bitcoin market, digital currency found support at the $137 handle. Bulls launched an upward move in an attempt of returning to the range. The upward move stalled at the lower limit of the aforementioned range. A point to note is that 50-session moving average can also be found in the area. A lot will depend on how the price reacts to this zone. A break higher would pave the way towards the upper limit of the range while a failure to do so could see ETHEREUM retest $137 handle.
Taking a look at EOS from a technical point of view, one can see that the coin has broken above the Overbalance structure (blue rectangle). Moreover, ongoing upward correction managed to break above the resistance zone at $2.66 handle. The first resistance level to watch in case bulls remain in markets’ favour can be found at 38.2% Fibo level ($2.83) and at the 100-period moving average that can be found nearby. Key resistance can be found at $3.25. On the other hand, should the price start to decline, investors should focus on recent low.
German banks and other financials institutions are not allowed to offer their clients a direct access to the cryptocurrency market. However, this may change soon as new draft legislation could allow offering of cryptocurrency deposits. In case the legislation is approved and takes effect, Germany will become one of the first major economies to have such a favourable approach towards digital assets. However, nothing is certain yet as cryptocurrencies are subject to huge volatility and, in turn, are not suitable for all customers of the banking sector. Having said that, we may see the draft go live but it is likely to be subject to significant restrictions.
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