- “Unlike bank transfers, crypto asset transactions can be cleared and settled quickly without an intermediary, wrote Dong He.
- Ethereum price could hold the support at $580 in the near-term, but another support zone is highlighted at $570.
Ethereum price acceleration towards $600 key resistance has slowed down, besides it is testing the key support area at $580. There is a weak bullish trend in progress on the chart. On the contrary, bearish pressure is still looming, moreover, the indicators show the prevalence of selling pressure in the near-term.
The IMF’s Monetary and Capital Markets Department, Dong He in his latest report argued the wide acceptance of cryptocurrencies into the mainstream financial sector could have a huge impact on central banks. Dong He also said that speculation leads to the volatility in the crypto market. A section of his report says:
“Unlike the value of fiat currencies, which is anchored by monetary policy and their status as legal tender, the value of crypto assets rests solely on the expectation that others will also value and use them. Since valuation is largely based on beliefs that are not well anchored, price volatility has been high.” He added, “Unlike bank transfers, crypto asset transactions can be cleared and settled quickly without an intermediary. The advantages are especially apparent in cross-border payments, which are costly, cumbersome, and opaque.”
In the meantime, Ethereum price is currently trading at $586, the upside has been limited below $600. A break above the key resistance at $600 will see ETH/USD battled to break above the bearish trend line, which is close to the 100 SMA. The key support area at $580 has stood strong in the last couple days. This support will continue to hold the price until the close of the session on Tuesday. The nest demand target is at $570, if Ethereum price extends declines to this level, then $550 will be within reach.
ETH/USD 4-hour chart
Share
