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Technical analysis of ETH/USD for Jan 31, 2020
Crypto Industry News:
One of the largest car manufacturers, Mercedes Benz, has partnered with the Blockchain Circulor startup to jointly implement a pilot program to track carbon dioxide emissions in the cobalt supply chain.
According to the published press release, the Mercedes and Circulor project is part of the Startup Autobahn initiative to identify new generation cars. The companies will implement Blockchain to track climate-relevant gas emissions and the number of recycled materials along the complex supply chains of battery cell manufacturers.
Ultimately, Mercedes intends to use the data collected during this pilot to develop a new carbon-neutral car fleet.
The project will initially focus on cobalt supplies, which have recently raised issues of origin and ethics. Cobalt is a key mineral for the production of lithium-ion batteries, with the majority of cobalt production coming from the Democratic Republic of Congo, a region criticized for the unethical conditions of cobalt mining. In 2017, the United Nations estimated that, worldwide, 168 million children are exploited and around 40,000 children are in the cobalt mines of DRC. This means that it is particularly important for companies to know where the materials for their products come from.
The pilot program based on Blockchain technology maps the flow of production of these materials and the associated carbon dioxide emissions, and also records how much recycled materials are used in the supply chain.
This will allegedly help Mercedes determine if its partner companies are complying with sustainability requirements, especially when it comes to human rights.
Technical Market Overview:
After the local correction to the level of $169.78, the ETH/USD bulls finally rallied higher towards the technical resistance at the level of $178.25 and broken through it. The new swing high has been made at the level of $185.37 and now the bulls are getting ready to test the breakout from below. It is worth to keep an eye on the current developments on the Ethereum market, nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $196.61 is clearly broken.
Weekly Pivot Points:
WR3 – $187.66
WR2 – $177.62
WR1 – $172.55
Weekly Pivot – $163.44
WS1 – $158.80
WS2 – $148.63
WS3 – $143.46
Trading Recommendations:
There is a possibility that the wave 2 corrective cycles are completed at the level of $115.05, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation. This strategy is valid as long as the level of $146.94 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $196.61 is clearly broken.
The material has been provided by InstaForex Company – www.instaforex.com
