FX.co ★ Technical Analysis of ETH/USD for June 7, 2023

Crypto Industry News:

El Salvador recognized BTC as legal tender in 2021. According to the authorities, this has led to increased interest in the country in terms of tourism. Added to this is the renewable energy development program at Metapan, which aims to use solar and wind energy to power bitcoin miners.

Now it turns out that Tether is one of the investors in the mentioned renewable energy project. As part of it, Volcano Energy, a 241 megawatt (MW) renewable energy center, was created in Metapan. It is expected to generate 169 MW of solar energy and 72 MW of wind energy. The energy produced will power the BTC mines in El Salvador. Tether estimates that the park's computing power will exceed 1.3 exahash per second. This would mean that Volcano Energy would be one of the largest cryptocurrency mines in the world.

Tether's chief technology officer, Paolo Ardoino, said the investment fits into a broader vision. The company wants to invest in the production of renewable energy, as well as in mining infrastructure.

Volcano Energy CEO Josue Lopez added that "over 52% of bitcoin is currently issued sustainably."

It is not known exactly how much Tether invested. The total cost will be USD 1 billion.

Technical Market Outlook:

The ETH/USD pair has bounced back above the level of $1,839 and is trading above the 50 and 100 MA. The next target for bulls is seen at the level of $1,913 and then possibly at the last swing high located at $1,928. The intraday technical support is seen at the level of $1,839 and $1,822. The strong and positive momentum on the H4 time frame chart supports the short-term bullish outlook for ETH.

Weekly Pivot Points:

WR3 - $1,962

WR2 - $1,919

WR1 - $1,894

Weekly Pivot - $1,877

WS1 - $1,851

WS2 - $1,834

WS3 - $1,791

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.