Technical Analysis of ETH/USD for July 31, 2020:
Crypto Industry News:
The story of PlusToken, one of the biggest scams in the cryptocurrency industry, unveils another card as reports of the arrest of nearly thirty suspects related to the case surfaced. PlusToken extorted nearly $ 6 billion from investors.
As many as 27 members of PlusToken’s core team have been arrested by Chinese police, according to a report by local ChainNews magazine on July 30. According to the report, the total amount of investors’ losses in the PlusToken fraud is estimated at 40 billion Chinese yuan, which is 5.7 billion dollars. The report also mentioned that investigators also arrested other 82 major members of the system.
Dovey Wan, co-founder of blockchain-based investment firm Primitive Ventures, tweeted that the owner key is already “burned”, so technically he won’t be able to commit a fraud.
“I sincerely hope this attempt will be a good educational experience for the Chinese community to start a successful DAO (Decentralized Autonomous Organization),” said Wan.
PlusToken has proven to be one of the biggest cryptocurrency scams in history. The project was initially presented as a South Korean based stock exchange offering high returns for investors. Ultimately, the entire operation was exposed as a fraud after several million interested parties said they had not been able to withdraw their investment. As previously reported, it was estimated that investors were defrauded for a total of around $ 5 billion.
Technical Market Outlook:
The ETH/USD pair has made a new local high at the level of $341.37 after the period of local consolidation was over. The bulls are still in control of the market and will try to continue the up trend soon. The next target is seen at the level of $355 and the nearest technical support is located at the level of $305.20 and $300.00. Please notice, the momentum is decreasing as the price go up, so there is a clear bearish divergence made at the H4 time frame. Today is the last day of the month end and the current monthly candle looks bullish.
Weekly Pivot Points:
WR3 – $435.28
WR2 – $378.51
WR1 – $351.41
Weekly Pivot – $292.40
WS1 – $265.43
WS2 – $206.30
WS3 – $178.38
The volatility on Ethereum is higher than usual, so all the dynamic moves up and down might reverse quickly. The larger time frame trend on Ethereum remains down and as long as the level of $365 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The key long-term technical support is seen at the level of $174.82.
The material has been provided by InstaForex Company – www.instaforex.com