FX.co ★ Technical analysis of ETH/USD for 19/12/2019:

Crypto Industry News:

Just two weeks ago, around December 3, the British Virgin Islands government (BVI) announced that it would launch its own stablecoin - BVI-LIFE. The coin was to be the result of a partnership with the Blockchain startup known as LIFELabs. Furthermore, the project was also to be used in British overseas territory.

However, something must have changed in the last two weeks because the BVI government suddenly began to deny that the token would be launched. As mentioned, state-supported stablecoin was to come into force and potentially replace the dollar, despite the fact that it was supposed to be attached to it.

However, the new press release indicates that the BVI government is not going to replace the dollar as the official currency. What's more, it seems that the token will not see the light of day at all.

In fact, the government statement clearly states that they are not in the process of developing or launching a national cryptocurrency, unlike media reports. They also emphasized that none of their partners or other entities does this. There are no plans to convert the dollar into a digital currency.

The government admitted that this idea was presented to them and that many international companies came up with the offer to trade and / or offer their services on BVI territory. They noticed that LIFELabs is one of these companies.

Of course, the government emphasized that they are still open to innovation and new technologies. They are not against any technology that could lead to better living conditions for their citizens, as well as companies that have opened their businesses in this country. This applies to companies that deal with intelligent technology, green energy, and even digital services, including cryptocurrency and Blockchain.

However, they emphasized that the whole idea of creating a national stablecoin from LIFELabs with plans to replace the dollar is nothing but a misunderstanding.

Technical Market Overview:

The ETH/USD has made a low at the level of $115.05 that ended up in a form of a Pin Bar/ Hammer candlestick pattern and might be labeled as a bottom for the wave (C) of the wave 2. From the Elliott wave point of view, it means the end of the corrective cycle at the mentioned level and a possibility for a new uptrend to start unfolding soon. So far, the bulls have managed to hit the level of $130.60 with a high made just at the level of the lower channel line at $133.62. If the uptrend resumes, the next target for bulls is seen at the level of $139.90.

Weekly Pivot Points:

WR3 - $160.13

WR2 - $155.12

WR1 - $147.83

Weekly Pivot - $142.21

WS1 - $135.13

WS2 - $130.72

WS3 - $123.35

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the downtrend. When the wave 2 corrective cycles are completed, the market might will ready for another wave up.