Technical Analysis of ETH/USD for June 4, 2020

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Crypto Industry News:

Chinese law enforcement agencies have discovered the operation of mining Bitcoins in what appeared to be underground burial sites. A local English-language news service reported law enforcement found illegal mining activities in the city of Daqing in northern China.

Police decided to investigate the area after a local oil company told law enforcement authorities about unexplained power losses. Policemen found an entrance near the mounds and discovered Bitcoin mining equipment that operated on stolen electricity.

Local media reported that law enforcement found 54 Bitcoin mining platforms in dog breeding in the same county in Heilongjiang Province at the beginning of the same week.

As cryptocurrency prices began to rise again, people’s readiness to mine also increased. However, the government of the Chinese province of Sichuan recently announced that local companies must stop mining cryptocurrencies. This is especially noteworthy because, according to research at the University of Cambridge, the province is responsible for almost 10% of Bitcoin’s global hashrate.

Technical Market Outlook:

The ETH/USD pair has bounced from the level of $225.84 and is currently testing the upper channel line from below. This bounce is quite strong and if bear will not regain the control of the market soon, then the bulls will push the price towards last swing high seen at $253.00. The decreasing momentum supports the short-term bearish outlook for Ethereum. The next target for bears is seen at the level of $217.65 and $215.58.

Weekly Pivot Points:

WR3 – $307.85

WR2 – $277.87

WR1 – $257.91

Weekly Pivot – $226.70

WS1 – $208.30

WS2 – $176.78

WS3 – $157.13

Trading Recommendations:

The larger time frame trend on Ethereum remains down and as long as the level of $288 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 next key technical support is seen at the level of $174.82.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical Analysis of ETH/USD for June 4, 2020:

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