Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for 31 July 2019

Crypto Industry News:
The US Department of Defense (DoD) aims to implement Blockchain's cybersecurity solution as part of its digital modernization strategy.

DoD has published plans for Blockchain technology in its four-year plan entitled "Digital DoD modernization strategy: Strategic plan for information management FY19-23."

According to the report, the Department's research branch, the Advanced Defense Research Projects Agency (DARPA), is currently involved in at least two cybercrime exploration projects using Blockchain.

First, DARPA is experimenting with Blockchain to build a new - or improved - communication and transaction platform. The stated intentions for this platform include communication between the units and the headquarters, as well as between intelligence officers and the Pentagon.

Second, DARPA tries to create an "unclassified code" using Blockchain technology, citing the ability of Blockchain to collect information about villains who are trying to break into databases.

Earlier, in February, DARPA announced plans to organize a two-day Blockchain workshop. DARPA was particularly interested in the study of consensus protocols not requiring consent. The organization also noted that there are potentially valuable use cases for Blockchain in storing data, saying: "The technologies of distributed consensus protocols have been revolutionized thanks to their significant role in cryptocurrency technologies and Blockchain. These technologies have dramatic implications for security and resilience when storing sensitive data and calculations, including for the Department of Defense".


Technical Market Overview:
Not much has changed at this market since the beginning of the week as the ETH/USD pair still keeps trading inside of a narrow price range between two levels of $189.91 - $223.38. The level of the local support at $199.68 has been tested, but the price did not break below but bounced back to the range. The bulls did not make any decision regarding the possible move higher, so the bullish momentum is decreasing as the price goes nowhere fast. In order to continue the move upwards, the bulls must break through the Fibonacci retracement levels located at $223.38, $233.77 and $244.16. Oterwise, the market will stay inside of the trading range or will be pushed lower by bears to test the technical support at the level of $189.91 again.

Weekly Pivot Points:
WR3 - $247.21
WR2 - $236.28
WR1 - $220.47

Weekly Pivot - $209.37
WS1 - $191.97
WS2 - $182.25
WS3 - $161.51


Trading recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The current cycle is wave 2 of the higher degree and it might have been completed, so the uptrend should resume sooner or later.





Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019