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

Crypto Industry News:

In a local online magazine Gustavo Franco looks at the Libra project from Facebook and the potential of cryptocurrencies in the field of traditional economy. The former president of the Brazilian Central Bank also allows himself very favorable comments on digital assets:

"Bitcoin is the most spectacular of cryptocurrencies, and the business built around it can be worth up to $ 175 billion (the value of all BTC in circulation). The difference, however, is that there are no shares, no shareholders or top-down management, " wrote Franco, who was the chairman of the Brazilian central bank twice in the 1990s, and then became a private investor and founded the company Rio Bravo Investimentos.

In his article, Franco focuses not only on the potential Bitcoin itself but also on the opportunities offered by cryptocurrencies marketed by huge corporations, which in the future may exclude traditional banks from the financial equation.

In his opinion, projects such as Libra, despite the lack of advantages associated with decentralization, are still a big threat to current financial institutions, and if a cryptocurrency appears on the market, it may soon be joined by similar instruments of other corporations: "McDonald's could create a Mac, a convertible cryptocurrency for sandwiches in restaurant chains. In turn, Starbucks would introduce the Star token, for which users would buy their favorite coffee" Franco goes ahead.

Technical Market Overview:

The ETH/USD pair has made a local low at the level of $219.27 after the technical support zone located between the levels of $224.95 - $221.50 had been violated. Moreover, the price is trading below the short-term decreasing trendline resistance, which indicated the corrective pullback might take a while. Any breakout above the trendline will be a first bullish signal with a target at the level of $238.68.

Weekly Pivot Points:

WR3 - $260.89

WR2 - $241.83

WR1 - $232.61

Weekly Pivot - $214.73

WS1 - $206.31

WS2 - $187.76

WS3 - $178.82

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 $235.42 to confirm the bullish momentum.


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