Technical Analysis of ETH/USD for August 24, 2020

Crypto Industry News:

The American IRS has released its draft income tax forms for 2020 where every American claiming income for the year will reply whether they used cryptocurrencies or not.

At the top of the front page, the latest Form 1040 asks, "Have you ever received, sold, shipped, exchanged or otherwise obtained any financial interest in any virtual currency in 2020?"

Chandan Lodha, founder of cryptographic software company Cointracker, said:

"The issue of cryptocurrencies is now at the forefront of IRS 1040 form for next year. It quite clearly shows that the IRS takes cryptocurrency taxes even more seriously" - we can read in one of his last tweets.

Technical Market Outlook:

The ETH/USD pair has felt from the level of $447.26 to $379.59 on the weekend, but this drop is still being considered as corrective, so the up trend remains intact. Currently, the market is testing the short-term trend line resistance locates close to the level of $392 and if the bulls will break through this level, then the Ethereum will be in full recovery mode. The nearest target is seen at the level of $407.03 - $414.11. The momentum is slowly increasing as the market bounces from the oversold conditions as well. 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 - $491.79

WR2 - $470.70

WR1 - $424.12

Weekly Pivot - $402.20

WS1 - $357.21

WS2 - $333.72

WS3 - $286.54

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