23.07.201908:02 Forex Analysis & Reviews: Technical analysis of ETH/USD for 23.07.2019

Crypto Industry News:

According to press reports, the Iranian Economic Commission has finalized a tariff plan for cryptocurrency miners.

According to the publication, the energy minister, Homayoon Ha'eri, announced that although the tariff system was completed, he was waiting for approval by the Iranian government - a government body consisting of various ministers and other officials elected by the president.

While Ha'eri did not develop a detailed price scheme, he said that the price depends on market factors, such as the price of fuel in the Persian Gulf.

The head of the Iranian Electric Syndicate in Iran, Ali Bakhshi, has previously offered a price of $ 0.07 per kilowatt-hour for crypto-currency miners. Electricity in Iran is currently very cheap due to government subsidies; one kilowatt-hour of electricity now costs $ 0.05, and energy is cheaper in the agricultural and industrial sectors.

To put these prices in context, Mostafa Rajabi Mashhadi, a spokesman for the energy ministry in the energy department, said earlier that the production of a single Bitcoin consumes around $ 1,400 in state subsidies. The press reports that the extraction of one Bitcoin reportedly uses as much energy as 24 buildings in Tehran in one year.

Today's news follows the announcement of the Central Bank of Iran (CBI), in which the bank's president, Abdol Hemmati, claimed that the CBI plans to authorize the extraction of cryptocurrencies.

Similar to today's energy minister statement, Hemmati said the planned law would require Iran's crypto miners to respect the price of electricity for export, instead of allowing miners to use a heavily subsidized internal power grid.

Also today, the vice president of the Islamic Republic of Iran Customs Administration, Jamal Arounaghi, announced that the agency has not yet issued a license for the import of mining equipment for cryptocurrencies. While there is a tariff system, the final decision on the license awaits approval by the government.

Technical Market Overview:

The ETH/USD pair has moved lower after a failure to break through the 50% Fibonacci retracement at the level of $234.38. The move-up looks quite strong, but to confirm the bottom for the wave Z and the termination of the whole corrective cycle, the bulls must break through the rest of the Fibonacci levels and head higher towards the key technical resistance seen at the level of $259.81. Currently, the next technical support is seen at the level of $190.94 and this is the swing low. Any violation of this level will invalidate the current wave scenario.

Weekly Pivot Points:

WR3 - $294.64

WR2 - $266.38

WR1 - $246.13

Weekly Pivot - $217.90

WS1 - $196.02

WS2 - $167.35

WS3 - $146.40

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 soon.