Technical Analysis of ETH/USD for June 28, 2021

Crypto Industry News:

Iran's Ministry of Industry, Mining and Trade has licensed 30 cryptocurrency mining centers, the Financial Tribune revealed this week. The media referred to the official data published on the department's website. One of these farms is located in the province of Tehran, where the country's capital is located.

Semnan Province, an administrative region east of Tehran, is home to the largest number of licensed facilities with six crypto farms. Alborz is next with four, followed by Mazandaran, East Azerbaijan and Zanjan.

The ministry has also issued 2,579 permits to establish new industrial units throughout the Republic, 305 of which are located in the Zanjan province. Fars Province, with 262 permits, and West Azerbaijan, with 247 permits, rank second and third respectively.

Iran approved crypto mining as legal activity two years ago. The government has introduced a licensing system for entities wishing to engage in the industry.

Technical Market Outlook:

The ETH/USD pair has possibly made a Double Bottom technical pattern at the level of $1,730. Since the bottom was made, the market had broken above the short-term trend line resistance and is heading towards the 38% Fibonacci retracement located at $2,077. The next target for bulls is seen at $2,201 (technical resistance) and $2,173 (50% Fibonacci retracement of the last wave down). The momentum is strong and positive, which supports the short term bullish outlook for ETH.

Weekly Pivot Points:

WR3 - $2,667

WR2 - $2,446

WR1 - $2,091

Weekly Pivot - $1,898

WS1 - $1,514

WS2 - $1,323

WS3 - $946

Trading Recommendations:

Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.

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

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