Technical Analysis of ETH/USD for August 5, 2020:

Crypto Industry Outlook:

Chinese tech giant Tencent has unveiled its plan to create a Blockchain-based wine traceability platform in partnership with Changyu, China's largest and oldest wine producer, local news reports.

According to Changyu, the platform is designed to track every step of the wine production and sale process, including planting, brewing, distribution and management. It issues a unique certificate, traceable to each wine bottle produced.

The entire process will be registered on the Blockchain network. The company's scannable QR codes for bottles would allow consumers to verify the authenticity of the wine. The QR code will also contain a whole set of data, such as plantation information, grape types, origin, rainfall, temperature information.

The Blockchain network is said to help distributors and retailers catch counterfeit bottles and identify bottles that have not passed quality control testing.

Technical Market Outlook:

The ETH/USD pair volatility has decreased as the pair had been seen trading in a narrow range located between the levels of $379.59 - $392.79. This is a good range for the intraday traders, so any level violation might indicate a possible direction for the future. For now the price is trading close to the recent ATH, around the level of $388 and the up trend is still being continued. The next target for bulls is seen at the level of $500. The key short-term support is seen at the level of $300. The momentum is still strong and positive, which supports the short-term bullish outlook.

Weekly Pivot Points:

WR3 - $532.98

WR2 - $470.84

WR1 - $423.16

Weekly Pivot - $365.99

WS1 - $312.04

WS2 - $255.55

WS3 - $208.47

Trading Recommendations:

Due to the violation of the level of $351, Ethereum is now in the up trend on the long-term time frame. The next target for bulls is seen at the level of $500. The key long-term technical support is located at the level of $86.10, but the zone around $300 - $308 is an important technical support as well.

analytics5f2a453039b8c.jpg

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