Technical Analysis of ETH/USD for July 8, 2020:

Crypto Industry News:

Willie Breedt, a South African citizen accused of stealing up to $ 16.3 million from around 2,000 investors through his VaultAge Solutions program, was allegedly forced into bankruptcy by a local court. According to a recent media report, the whole situation was initiated on 3 July by Simon Dix - one of the largest VaultAge investors who entrusted Breedt with 7.5 million South African rand, or $ 440,000.

VaultAge Solutions was founded in 2018, promising weekly returns on customer deposits through mining and trading cryptocurrencies. Program investors allegedly received only 1% of the expected profits. Before hiding about two weeks ago, the VaultAge operator initiated an intimidation case. A group of bailiffs hired by angry investors tracked him down at a guest house at Silver Lakes Estate in Pretoria, which he had reserved under a false name. Previous reports suggested that CEO VaultAge fled the country to Mozambique in December 2019.

Shortly after the sequestration order was issued, the Directorate for Investigating Priority Crimes, South Africa, known as "Hawks," raided the guest house, confiscating a laptop and Ledger Nano wallet, which could potentially contain some of the missing funds. In addition, the South African reserve bank has appointed PwC to investigate VaultAge and all agents who may have carried out transactions on its behalf.

Technical Market Outlook:

The ETH/USD has made the Bearish Engulfing pattern has been made at the top of the move up and the market reversed lower towards the level of $233.88. Any violation of this level will open the road towards the support seen at $232.20 or below. Please notice, there is another Pin Bar candle made at the top of the recent rally as well. The levels of $235.42 and $232.20 will now act as a local technical support for the price. On the other hand, the next target for bulls is seen at the level of $243.71 and $248.86.

Weekly Pivot Points:

WR3 - $241.60

WR2 - $236.80

WR1 - $229.63

Weekly Pivot - $225.04

WS1 - $218.03

WS2 - $213.12

WS3 - $205.61

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 next key technical support is seen at the level of $174.82.

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