ETH/USD stays directionless below $190.00

AZTEC creates a protocol to increase privacy of Ethereum network.
ETH/USD retreats from the recent high, bullish trend still intact.

Ethereum (ETH) hit the recent high at $195.35 and retreated to $187.50 by the time of writing. The second largest digital asset with the current market value of $20.6 billion has stayed mostly unchanged both on a day-to-day basis and since the beginning of the day amid decreasing market volatility. At the current price only about 34% of all Ethereum addresses are in the money, compared to just 10% at the beginning of January.

Privacy comes to Ethereum network

London-based startup AZTEC launched a protocol that would enhance privacy of Ethereum’s mainnet. According to the project’s founders, the the protocol developed by the company, ensures a high degree of confidentiality and allows to reduce transaction costs. Apart from that, users will be able to issue their pwn tokens using the developer’s kit provided by AZTEC.

The protocol uses zk-SNARK privacy algorithm to encrypt blockchain data and validate the transactions. This algorithm is also used in such privacy-focused coins as Zcash.

The network currently operates in a test mode and supports only a privacy-focused stablecoin zkDai. Other tokens with zk-SNARKs will be issued within the next six weeks.

ETH/USD: technical picture

From the long-term point of view, ETH/USD has been moving within a bullish trend after it hit the bottom at $116.40 on December 18. The coin has gained over 46% since the beginning of the year, though it is still down 15% from July 2019 high.

The local support is created by SMA200 daily at $175.60. A sustainable move below this area will bring more sellers to the market and push the price towards $170.00. This support level is followed by $158.00 reinforced by SMA100 daily. A sustainable move below this level will increase the downside pressure and negate the immediate bullish scenario with the next bearish focus on $150.00 (SMA50).

On the upside, we will need to see a sustainable move above $190.00 for the upside to gain traction. The next resistance is created by the recent high of $195.35 and psychological $200.00. Most likely, the bulls won’t be able to clear this area at first attempt; however, once it is out of the way, the $224.50 (September 19, 2019) will come into focus.