Technical Analysis of ETH/USD for August 20, 2020

Crypto Industry News:

The Bank of England will attend a key meeting tomorrow to discuss Central Bank Digital Currencies (CBDCs) and their possible infrastructure projects.

The event is hosted by the global central banking think tank, OMFIF (Official Monetary and Financial Institutions Forum). The event will take place on August 19 this year, among others, with the participation of Simon Scorer, a senior BoE fintech specialist. Delegates from Swiss National Bank, ING Nederland and Hungarian National Bank (Magyar Nemzeti Bank) are also expected to arrive. Additionally, Sky Guo, CEO of the Cypherium enterprise-focused blockchain platform, will join the discussion.

The main topic of the meeting will be to discuss the ways in which blockchain technology can benefit various CBDC models. This includes the use of smart contracts, for example, as in the case of 'programmable money' projects and blockchain interoperational models both within and outside national borders.

"As long as CBDCs remain at an early stage of concept development, we need to discuss the advantages and disadvantages of infrastructure concepts, especially with regard to how these instruments will interact and function" - Guo said.

Each central bank delegate, Simon Scorer from the Supervisory Board, Anko Szombati, Cees Van Wijk, IT specialist in the ING blockchain team, and Thomas Moser, a board member of Swiss National Bank, will present the results of internal CBDC research at their institution.

As the OMFIF notes, the pressure from the private sector is enormous. It has resulted in around 80% of central banks in the world taking CBDC issues seriously and evaluating various infrastructure options, including blockchain.

In March 2020, the Economic Council issued a document based on the discussion on CBDC. In it, she analyzed the rapidly changing payment model and the potential role of digital currency in supporting the bank's tasks in managing monetary and financial stability.

Technical Market Outlook:

The ETH/USD pair has retraced 61% of the last wave up and bounced from the level of $396.47 (61% Fibonacci retracement).However, the market is still trading below the short-term trend line resistance, so in order to resume the up trend, the bulls will have to break through the level of $414.11. If they fail to break, then the next target for bears is seen at the level of $362. 60. All the bigger time frame charts looks very bullish and the up trend should be continued after the 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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