Technical Analysis of ETH/USD for June 12, 2020:

Crypto Industry News:

On June 9, police arrested a resident of Makhachkala in Russia, who allegedly created an illegal mass cryptocurrency mining structure that connected about 500 platforms to the local power grid.

According to a statement from local authorities, a 30-year-old miner operated a mine that caused economic damage to the national power grid worth over 34 million rubles ($ 494,000).

The report claims that an unidentified person rented a third floor in a non-residential district in May, at a construction estate in the suburban town of New Khushet, where he founded a mining farm to generate Bitcoins and altcoins. Police reported that the alleged miner connected to cables running the power line through specialized equipment. During the raid, local authorities found 518 computer components used to mine cryptocurrencies. Law enforcement authorities instituted criminal proceedings against a suspected miner for causing property damage as a result of fraud or breach of trust. At the same time, preliminary investigations are underway to clarify whether a Makhachkala resident was complicit in the mining program.

The police did not provide further details about what altcoins the suspect was extracting, or what profits the program generated in the short period in which the platforms for mining cryptocurrencies were operating.

Technical Market Outlook:

The ETH/USD pair had broken out of the lower range boundary located at $235.42 and tested the lower channel line around the level of $225.84. The level of $235.42 will now act as short-term technical resistance for the price. The decreasing momentum supports the short-term bearish outlook for Ethereum and the next target for bears is seen at the level of $217.65 and $215.58.

Weekly Pivot Points:

WR3 - $282.07

WR2 - $267.98

WR1 - $254.66

Weekly Pivot - $238.43

WS1 - $226.18

WS2 - $210.71

WS3 - $197.39

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.

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