Crypto Industry News:
Tether Holdings says second-quarter profit was around $850 million. So it rose despite the fact that stablecoins are imploding in the face of De-Fi rebound and Bitcoin's rise. The malicious would say that the creator of the largest financial pyramid in the history of Wall Street also made money when everyone else lost. What is important, however, is the reserve of US Treasury bonds declared by Tether. According to the report, it is about $72.5 billion - more than the balance of bonds in the balance sheet of even Australia. The report was published just a day before Fitch Ratings downgraded the US rating. Bond prices have been falling for a long time and could deplete Tether's hedge, supporting a potential stablecoin depeg.
The certification of $86.5 billion of USDT-backing reserves as of June 30 showed that approximately 85% ($73.6 billion) of USDT-backing collateral was held in cash and cash equivalents. So about $1.1 billion in cash and $72.5 billion in US Treasury bonds.
Stablecoins aim to maintain a 1:1 (peg) value with less volatile assets, mainly the dollar. In the baseline scenario, this supports holding large reserves as separate collateral;
Technical Market Outlook:
The ETH/USD pair has bounced from the level of $1,827 which is the key short-term technical support level. Any violation of this level would open the road towards the next target located at $1,777. The intraday technical resistance is seen at the level of $1,888 and the bounce high was made at the level of $1,800. In a case of a another breakout lower, the next target is located at $1,759. The weak and negative momentum, together with an increasing bearish pressure supports the short-term bearish outlook for ETH.
Weekly Pivot Points:
WR3 - $1,906
WR2 - $1,885
WR1 - $1,874
Weekly Pivot - $1,863
WS1 - $1,853
WS2 - $1,842
WS3 - $1,821
Trading Outlook:
The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August 2022 at the level of $2,029. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.