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Technical analysis of ETH/USD for Dec 12, 2019
Crypto Industry News:
The Nike shoe giant patented shoes – named CryptoKicks – that are tokenized as a non-exchangeable token (NFT) in the Ethereum Blockchain.
The token would be “unlocked” when purchasing the appropriate physical shoe by combining the 10-digit shoe identification code with the owner identification code. The system aims to provide a way to guarantee the authenticity of goods, as described in the patent:
“Potential and current owners […] can buy and sell digital assets through one or more Blockchain registers operating in a decentralized computer system. […] the user can buy a new pair of highly sought after shoes from a verified seller who can provide certified documents of their origin. […] After receiving the shoe box containing the purchased shoes, the user scans the UPC field using the barcode scanning function in the application running on the user’s smartphone “- we read in the official description of the token.
Interestingly, Nike also suggests that the creation of tokens may be associated with the sale of footwear, which would also allow verification of footwear shortage in circulation. When footwear is sold, the ownership of the digital token can be transferred along with the physical product. Ownership of these tokens would be managed in a dedicated application, also aimed at increasing brand involvement.
Technical Market Overview:
The ETH/USD pair has broken out from the narrow horizontal zone and due to the increasing pressure from the supply side the market has made a new local low at the level of $138.22. It means the 61% Fibonacci retracement of the last wave up had been broken as well and the next target for bears is seen at the level of $136.98.
Weekly Pivot Points:
WR3 – $162.22
WR2 – $157.56
WR1 – $153.69
Weekly Pivot – $148.38
WS1 – $144.67
WS2 – $138.97
WS3 – $135.22
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.
The material has been provided by InstaForex Company – www.instaforex.com
