Technical Analysis of ETH/USD for August 19, 2020

Crypto Industry News:

Bulgarian authorities arrested two men for illegal use of electricity, worth more than $ 1.5 million, to operate two cryptocurrency mining farms.

According to press releases, two men have been detained in connection with the theft of $ 1.5 million of electricity used to mine Bitcoin in the small town of Kyustendil. Representatives of the Regional Directorate of the Ministry of the Interior and CEZ Electro Bulgaria spoke at a press conference in which they stated that two Sofia Bulgarians, aged 31 and 38, had been caught transferring energy to their two illegal cryptocurrency farms for 3-6 months. However, evidence suggests mining equipment has been there for over a year.

CEZ deputy director Philip Yordanov said it was the "biggest theft" of electricity the company had ever discovered. The stolen amount would be enough to power the neighboring town for about a month. Two men were detained by the police for 24 hours and then released pending trial.

Unscrupulous cryptocurrency miners in many countries have tried to pull energy from the grid as more and more people become aware of the profitability of tokens. One of the biggest thefts took place in China in July 2019, when 22 suspects were arrested after similar involvement in an illegal cryptocurrency mining farm that consumed $ 3 million in stolen electricity.

Technical Market Outlook:

After the ETH/USD pair had made a new swing high at the level of $447.26 the profit taking action has begun, which in effect pushed the ETH market through the technical support at $430.71 and $414.11. Currently, the bears has hit the technical support at the level of $407.03, which is very close to the 50% retracement level of the last wave up, so some kind of bounce might be expected here. If not, then the next target is seen at the level of $396.47 (61% Fibonacci retracement). Nevertheless, all the bigger time frame charts looks very bullish and the up trend should be continued after the supposed correction is completed.

Weekly Pivot Points:

WR3 - $542.08

WR2 - $493.82

WR1 - $466.95

Weekly Pivot - $411.50

WS1 - $387.37

WS2 - $337.80

WS3 - $311.68

Trading Recommendations:

The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500. The key mid-term technical support is seen at the level of $364.95.

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