Technical analysis of ETH/USD for August 16, 2019

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Crypto Industry News:

Researchers at the University of Waterloo in Canada have used Blockchain technology to increase trust in electric vehicle charging systems, according to the scientific portal EurekAlert. This discovery can increase the use and extension of the overall charging infrastructure for electric vehicles.

Typically, an electric vehicle charging service provider will look for property owners to collaborate and install charging points. Electric vehicle owners can then use them for a fee, which is shared between the equipment supplier and the property owner.

The supplier operates the equipment, so the property owner must trust him that he will fairly compensate for the consumption of electricity. Similarly, the owner of an electronic vehicle must trust that he will not be charged an excessive service fee. The situation is aggravated by the fact that this is a very young industry with no established trust structure. The open Blockchain platform will allow all parties to access data and check if they have been changed.

Researchers established three steps to integrate Blockchain into the system to reduce dependence on trust.

The first is to identify the parties involved and possible trust issues. The second is to design a minimal Blockchain solution to alleviate these problems. Blockchain should closely mimic all parts of the older system that need to be replaced. Therefore, dependencies can still work with minimal modification.

Stage three is a gradual migration from the existing Blockchain hybrid/trust to a truly decentralized business model.

Technical Market Overview:

The bulls at the ETH/USD pair had been capped at the level of $189.91 after the rally was not that strong as they expected. The market has made a Shooting Star candlestick pattern at the end of the move up, so it was another clue regarding the strength of the bounce. The market is now going back down towards the level of $174.54 despite the clear bullish divergence between the price and the momentum indicator. The key technical support is located at the level of $148.27.

Weekly Pivot Points:

WR3 – $274.14

WR2 – $256.36

WR1 – $233.10

Weekly Pivot – $214.72

WS1 – $193.28

WS2 – $173.99

WS3 – $150.66

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The current cycle is wave 2 of the higher degree and it might have been completed, so the uptrend should resume sooner or later. We are waiting for a breakout above the level of $238.68 to confirm the bullish momentum.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis of ETH/USD for 16/08/2019:

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