Technical Analysis of ETH/USD for May 21, 2020

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Crypto Industry News:

The team responsible for the tBTC project, an attempt to transfer Bitcoin to Ethereum via decentralized depositories, closed the bridge just two days after launch.

The decision was revealed today by Matt Luongo, founder of Thesis, a company that supports tBTC as part of the Keep project. TBTC was launched on May 16 in the Ethereum network, operating just two days before performing a temporary shutdown operation.

Although the team did not specify the reason for disabling the protocol, it seems likely that this was due to a smart contract error discovered by Antonio Salazar Cardozo, head of labor engineering. Luongo explained that the contract has been checked many times, but it seems that this was not enough.

Luongo emphasized that tBTC will “rise again”, probably after the team re-implements the agreed smart contracts.

Technical Market Outlook:

The ETH/USD pair has broken out of the Triangle pattern and the breakout direction was down. Moreover, the bears has manage to break through the short-term trend line support as well ( marked in navy on chart). The local low was made at the level of $205.05 which is a technical support for the price. Any violation of this level will lead to the correction extension towards the level of $198.72. Please notice, that the momentum is decreasing as market is coming off from the overbought conditions.

Weekly Pivot Points:

WR3 – $259.01

WR2 – $231.70

WR1 – $222.59

Weekly Pivot – $197.56

WS1 – $188.48

WS2 – $163.94

WS3 – $154.56

Trading Recommendations:

The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.

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

Source:: Technical Analysis of ETH/USD for May 21, 2020:

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