Technical Analysis of ETH/USD for August 31, 2020

Crypto Industry News:

Taras Kulyk, senior vice president of Blockchain Business Development at Core Scientific, says countries competing to become blockchain leaders vary greatly in what they can offer cryptocurrency miners.

In one interview, Kulyk stated that global hashrate diversification is increasing as countries around the world compete for control of the cryptocurrency mining industry. Kulyk believes China is a desirable cryptocurrency mining hub due to the specific factors it enjoys, notably low labor costs, unit access, and reduced energy cost during the rainy season, but explained:

"One of the major economic problems that led to the recent government repression is the theft of power, which local politicians then have to stop. Another key economic problem causing regulatory uncertainty is capital control issues. Both of these factors have made the current regulatory environment in China uncertain. for digital mining companies. The turmoil at the highest political level in any country or jurisdiction is likely to cause current operators to cut planned capital expenditure or, worse, to shut down and relocate. "

Cryptocurrency mining "is extremely capital intensive, he pointed out, which means operators require stability over a long period of time to ensure capital recovery and return on investment." He also warned that political unrest "could disrupt this much-needed stability."

Kulyk pointed out how the new regulations affected competitors in individual countries such as Iran, Ukraine, Canada and Kazakhstan:

"Overall, we are seeing the regulatory burden of digital mining diminishing as it is increasingly seen as a way to revive the assets of the expiration industry to make them useful in the 2.0 technology economy. Governments are turning to their regulatory policy, in particular by making its policy more favorable to mining, in order to gain a competitive advantage over other players in the mining industry. "

With the advent of clarity on cryptocurrency mining legislation, Kulyk believes that "we will continue to watch institutional investors allocate portfolio space to leaders in the field," and concluded that:

The stronger the leadership team and the transparency of ownership and operations, the more likely the company will be a target for investors looking to engage in digital mining.

Technical Market Outlook:

The ETH/USD had broke through the trend line resistnace around the level of $387 and continued to move higher. The recent high has been made at the level of $429.90, just below the technical resistance located at the level of $430.71. The zone between the levels of $407.03 - $414.11 will now act as a demand zone for bulls. The key technical restance is seen at the level of $447.26 (this year's high). The weekly trend remains up.

Weekly Pivot Points:

WR3 - $507.05

WR2 - $468.00

WR1 - $450.50

Weekly Pivot - $409.09

WS1 - $391.88

WS2 - $350.52

WS3 - $335.87

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.

analytics5f4c8c7714781.jpg

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