29.07.202109:29 Forex Analysis & Reviews: Technical Analysis of ETH/USD for July 29, 2021

Crypto Industry News:

Iran's Electricity Generation Organization, Tavanir, has issued a warning regarding the entry of Chinese crypto miners into Iran. The state-owned company shared its concerns in correspondence with the Central Task Force for Combating Smuggling of Goods and Foreign Currencies.

In a letter published by online media, Tavanir CEO Mohammad Hussein Motevallizadeh referred to media reports of mining plant closings in China. According to a report quoted by the English-language financial daily, the government's offensive against the sector could push Chinese miners to other countries.

Calling for stringent controls to be put in place to prevent a massive influx of mining companies and coin-mining equipment from China to Iran, Motevallizadeh stated:

"Lower electricity costs make Iran attractive to Chinese miners. They will likely start smuggling mining equipment to us."

Cryptocurrencies are growing in popularity in Iran with many citizens investing amid rising prices over the past year. Cheap, subsidized electricity also catalyzed crypto mining, and the Islamic Republic recognized it as legal industrial activity in the summer of 2019.

Iran's importance as a mining site has grown. According to a study by the University of Cambridge, the country accounts for more than 4.6% of the global hashrate.

The energy-intensive minting of digital currencies has been among the main causes of electricity shortages and power cuts across the country this summer. Record high temperatures significantly increased the demand for energy.

In May, the government in Tehran announced that it would also block licensed miners during peak consumption hours. Meanwhile, Tavanir is engaged in illegal mining operations, seizing over 200,000 units of equipment in the past few months. The appliances were estimated to have used 750 megawatts of electricity, which is equivalent to the total energy consumption of five provinces, the energy company says.

Technical Market Outlook:

The ETH/USD pair has made this month's high at the level of $2,435, but the bears were active at this level and pushed the price back under the short-term trend line resistance seen around the level of $2,370. The lower high was made at the level of $2,346 and it looks like a Pin Bar candlestick formation. The pair is now back inside the channel, but if the momentum will keep going up, then the next target for bulls is seen at the level of $2,453. In order to continue the rally, bulls need to break through the level of $2,455. The key short-term support is seen at the level of $2,201 and $2,106.

Weekly Pivot Points:

WR3 - $2,880

WR2 - $2,525

WR1 - $2,386

Weekly Pivot - $2,056

WS1 - $1,1912

WS2 - $1,571

WS3 - $1,423

Trading Recommendations:

Ethereum might have started the next wave up as the next long-term target for bulls is seen at the level of $3,000. Nevertheless, in order to resume the long-term up trend, bulls have to break through the last swing high seen at the level of $2,880. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key support for bulls.