FX.co ★ Technical Analysis of ETH/USD for June 8, 2021

Crypto Industry News:

US authorities have considered the prospect of blocking cryptocurrencies as a solution to ransomware attacks. We saw their intensity last month when American institutions were attacked. However, opinions on this subject are not clear-cut.

The largest fuel pipeline in America was brought to a halt in early May when hackers infected the Colonial Pipeline's computer networks. JBS, a food packaging company, was treated with a similar attack. Colonial Pipeline paid a ransom of $ 4.4 million.

US Senator Mark Warner referred to the matter in a TV interview and disagreed that crypto should be completely blocked:

"I have a lot of questions about cryptocurrencies. Some good things have come out of the distributed ledger technology, but now we see some dark sides (...) and therefore I'm more focused on transparency," he said.

Warner stated that some cryptocurrency "systems" can be "compromised: by authorities if they so wish." However, he said stopping the technology would simply redirect criminals to other technologies.

"The truth is there are ways we can break through some of these systems, but (...) if there is no transparency on this payment, fraudsters will just find another way to hide it" - Warner said.

Technical Market Outlook:

The ETH/USD bounce had broken out from the Triangle pattern and made a new local low at the level of $2,427. As long as the price is still under the level of $2,914, the bears are still in full control of the market and the next target for bears is seen at the level of $1,729, $1,633 and $1,544. The nearest technical support is still seen at the level of $2,201.

Weekly Pivot Points:

WR3 - $3,628

WR2 - $3,236

WR1 - $2,995

Weekly Pivot - $2,426

WS1 - $2,383

WS2 - $2,000

WS3 - $1,765

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.