Technical Analysis of ETH/USD for August 28, 2020

Crypto Industry News:

Insiders helped Tavanir, an Iranian energy company, shut down 1,100 cryptocurrency mining farms that allegedly operated without proper licenses.

Although Tavanir claims that some miners were using "high level" subsidized electricity, their report explained that no significant changes in electricity consumption were observed. Local authorities said that was why they had to rely on whistleblowers, noting that Tavanir "cannot detect all illegal farms just by studying their consumption patterns."

People who provided information leading to the discovery of unauthorized miners were awarded Rial 100 million ($ 480) for their cooperation, the Financial Tribune said.

Iran recently announced it would allow industrial-scale power plants to act as Bitcoin miners - provided they don't use subsidized fuel.

National cryptocurrency mining law states that miners should disclose their identity and provide detailed information to the Ministry of Industry, Mines and Trade. This information includes the size of the mining farms and the type of equipment they use. They are collected to prevent smuggling into the country. Miners are defined both as natural persons and companies.

Illegal cryptocurrency miners risk fines ranging from $ 2,000 to $ 5,000 for each piece of equipment used, and an additional $ 20,000 fine for being caught using a subsidized source of electricity.

Technical Market Outlook:

The ETH/USD pair keeps trading below the short term trend line resistance after it was rejected at 50% Fibonacci retracement of the last wave down located at the level of $389.66. The market reversed, but managed to bounce from the intraday technical support seen at the level of $375.62. If the level of $369.58 is clearly violated, then the next target for bears is seen at the level of $362.30. The nearest technical resistance is seen at the level of $391.73. 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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