Ethereum failed to stay above $1,900 and corrected lower against the US Dollar. ETH price is correcting gains and it seems like to might test $1,750 before a fresh increase.
Ethereum is correcting lower from the $1,975 swing high and trading below $1,900.
The price is now testing the $1,850 support, but it is below the 100 hourly simple moving average.
There is a major bullish trend line forming with support near $1,850 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could dip further, but the bulls are likely to remain active near $1,750.
Ethereum Price is Correcting Gains
Ethereum made another attempt to settle above $2,000, but it failed. The recent swing high was formed near $1,976 before ETH price started a fresh decline.
There was a break below the $1,950 and $1,900 support levels. Ether price even tested the $1,850 support level and it is now trading well below the 100 hourly simple moving average. A low is formed near $1,853 and the price is currently consolidating losses.
An initial resistance on the upside is near the $1,880 level. It is close to the 23.6% Fib retracement level of the recent drop from the $1,976 high to $1,853 low.
The first major resistance is near the $1,910 level or the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent drop from the $1,976 high to $1,853 low. The main resistance is now forming near the $1,940 level and a connecting bearish trend line on the hourly chart of ETH/USD.
To start a fresh increase, the price must settle above $1,910 and then gain momentum above the $1,950 level. In the stated case, the price could easily clear the $2,000 level.
Dips Supported in ETH?
If Ethereum fails to extend its rise above the $1,950 level, it could continue to move down. The first major support is near the $1,850 level.
There is also a major bullish trend line forming with support near $1,850 on the same chart. A clear break below the trend line support and $1,830 could open the doors for a move towards the $1,750 support zone in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $1,850
Major Resistance Level – $1,950
Russian Bill to Recognize Cryptocurrencies as Property Advances in Parliament
Russia’s parliament has advanced the bill that proposes to recognize cryptocurrencies as property. The proposed law will provide legal protection for cryptocurrencies but income from their activities will also be subject to taxation.
Cryptocurrencies to Be Considered Property in Russia
Russia’s State Duma, the lower house of Parliament, adopted a bill that recognizes cryptocurrencies as property and subjects income from them to taxation in the first reading, RIA Novosti reported last week. Noting that the document was submitted to the parliament by the government on Dec. 1, 2020, the publication detailed:
The bill proposes to recognize digital currency as property for the application of the tax code. As Prime Minister Mikhail Mishustin explained earlier, this will allow the owner of the cryptocurrency to count on legal protection and defend his rights in court.
Prime Minister Mishustin talked about the Russian government’s plans to recognize cryptocurrencies as property back in November when he outlined initiatives, including cryptocurrency regulation, to fight against the spread of the coronavirus pandemic.
The bill imposes taxes on income from cryptocurrency activities. Russian citizens and organizations will have to submit a declaration if the value of cryptocurrency transactions during the year exceeds 600,000 rubles ($8,100). Meanwhile, cryptocurrency will not be subject to depreciation, and transactions related to its circulation will not be subject to VAT, the publication conveyed.
For non-payment or incomplete payment of tax, there will be a 40% penalty of the amount owed. There will also be a fine for failure to submit, untimely submission, or submission of a declaration with inaccurate information.
For declaration violations, a fine of 50,000 rubles will be levied. The Federal Tax Service will have the authority to request individuals’ bank statements of accounts used for cryptocurrency transactions.
The State Duma Committee on Budget and Taxes intends to clarify which crypto transactions are exempt from VAT when finalizing the draft for the second reading. In addition, it will specify the declaration requirements for disposing of digital currency and submitting reports on transactions.
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