05.08.201908:34 Forex Analysis & Reviews: Technical analysis of ETH/USD for 05/08/2019:

Crypto Industry News:

The Chinese manufacturer of ASIC Bitcoin excavators, Bitmain, lost $ 625 million in the first two months of this year, according to a QQ report from August 2.

According to the report, the company suffered losses of USD 625 million in March, USD 345 in January and USD 280 million in February. These results were probably caused by the sale of obsolete 16-nanometer ASICs at low prices, and after the removal of stocks from these machines, new profits from the sale of new 7-nanometer mining platforms are expected.

It was estimated that the company's gross profit margin would reach 30% in April thanks to the sale of the aforementioned device. At the end of March, the company announced that its 9-nanometer excavator from the Antminer S17 series is to be launched on April 9.

Bitmain is planning to fundraise again, arguing that the cryptocurrency market has started to record profits again. The company was hoping to get $ 3 billion from the planned IPO in Hong Kong, but the latest report suggested that this fundraising goal would be reduced to between $ 300 million and $ 500 million if it was carried out in the United States.

The ETH/USD pair is trying harder to break out of the horizontal trading range located between the levels of $199.68 - $235.42. The recent move up above the local resistance located at the level of $228.04 has been made on a high volume and momentum, so the chances are good that it will at least test the level of $235.42. Please notice, that the corrective cycle in wave 2 of the higher degree might have been completed already.

Weekly Pivot Points:

WR3 - $260.89

WR2 - $241.83

WR1 - $232.61

Weekly Pivot - $214.73

WS1 - $206.31

WS2 - $187.76

WS3 - $178.82

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. We are waiting for a breakout above the level of $235.42 to confirm the bullish momentum.