FX.co ★ Technical Analysis of ETH/USD for December 4, 2020

Crypto Industry News:

The Libra Association, uniting 27 global corporations, announced yesterday that it has changed its name to Diem. The new name means "day" in Latin.

In addition to changing the brand name, there have also been changes in the management positions of the Association. The new hires include Stuart Levey as new CEO, James Emmett as MD, Sterling Daines as Chief Compliance Officer, Ian Jenkins as Chief Financial Officer, and Saumya Bhavsar as General Counsel. Other changes include the Chief Technology Officer Dahlia Malkhi, Christy Clark as Chief of Staff, Steve Bunnell as Chief Legal Officer. At the same time, Kiran Raj has become executive vice president of development and innovation and deputy attorney-at-law.

The Libra issue started in earnest when the Association first presented its plan in June 2019. With Facebook at the forefront of this mission, the project faced challenges from members of the cryptocurrency community and regulators.

This was due to the fact that Facebook shared data of its users with third parties for profit. Given the amount of personal data that the giant has access to, venturing into the financial world could give Facebook much more power than the US government itself.

As mentioned earlier, Libra's rebranding to Diem is a new start for the Association and a restructuring of the previous plan that still needs to be approved by the financial authorities.

Technical Market Outlook:

The ETH/USD pair has made a new local high after the low of the pull-back wave was made at $561.91. The market keeps trading above the $600 level and the next target is the recent swing high seen at $635.45. The momentum is still strong and positive, so the up trend might be still continued. The level of $548.16 will now act as temporary technical support for the price. The nearest technical resistance is seen at the level of $600 and $620.52. The is no indication of the up trend reversal on the higher time frames like weekly and monthly.

Weekly Pivot Points:

WR3 - $771.53

WR2 - $696.42

WR1 - $633.11

Weekly Pivot - $557.97

WS1 - $496.01

WS2 - $420.20

WS3 - $358.90

Trading Recommendations:

The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $700, so any correction or local pull-back should be used to open the buy orders. Moreover, the bulls has hit the 38% Fibonacci retracement located at the level of $587.53 on the weekly time frame chart, but the current up trend is still valid. This scenario is valid as long as the level of $360 is broken.