16.07.201907:45 Forex Analysis & Reviews: Technical analysis of ETH/USD for 16/07/2019:

Crypto Industry News:

Ethereum's co-founder, Vitalik Buterin, proposed the use of Blockchain Bitcoin Cash as a temporary scalability solution for the Ethereum network. The developer presented a summary of this idea in an article published in Ethereum Research.

The Ethereum network has experienced some scalability problems because its native Blockchain can process just 15 transactions per second (TPS), while its main competitor, Ripple, is reportedly holding 1,500 TPS.

Therefore, the Ethereum community is working on Ethereum 2.0, a major network update that will improve its scalability after passing ETH from proof-of-work to the proof-of-stake algorithm.

While the first stages of Ethereum 2.0 change are expected to appear in early 2020, Buterin has now suggested the implementation of other Blockchain networks as a new option to improve Ethereum's scalability in the short run. Buterin said that Blockchain Bitcoin Cash fits this goal perfectly, because the cryptocurrency provides a bandwidth of about 53 kilobytes (KB) per second, unlike 8 KB Ethereum.

In addition, Buterin presented three other important reasons why it is worth using this network, including low fees, the readiness of necessary machines and the openness of the Bitcoin Cash community to people using Blockchain "to whatever they want, as long as they pay transaction fees.

In the post, Buterin indicated a 10-minute blocking time for Bitcoin Cash as the main obstacle to obtaining a good Ethereum scalability solution. The expert noted, however, that this problem can be solved by means of payments without confirmation using techniques such as Avalanche before consensus.

The crypto community on Twitter negatively assessed the new Bitcoin Cash Buterin integration proposal, and some commentators predicted that such a scenario could lead both Ethereum and Bitcoin Cash to a faster fall.

Technical Market Overview:

The ETH/USD pair has bounced 50% from the recent swing low located at the level of $190.94. There is still a potential for a further rally higher as this might have been the last of the corrective waves down and the market might be ready to resume the uptrend. The key technical resistance to confirm the move up is seen at the level of $259.81.

Weekly Pivot Points:

WR3 - $421.78

WR2 - $368.25

WR1 - $298.00

Weekly Pivot - $241.50

WS1 - $169.20

WS2 - $118.90

WS3 - $41.01

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.