FX.co ★ Technical Analysis of ETH/USD for July 6, 2023

Crypto Industry News:

The craze for artificial intelligence and the turmoil in the cryptocurrency market have done their job. However, some cryptocurrency mining companies have decided to implement a new business model by offering the rental of computing power for training artificial intelligence. The first companies that have included such a service in their offer report that it is very profitable.

The instability of the cryptocurrency market caused by the actions of the SEC and the transition of the Ethereum cryptocurrency from the Proof-of-Work algorithm to the energy-saving Proof-of-Stake algorithm has strongly affected cryptocurrency mining companies. These companies faced quite a big dilemma of using the power of thousands of graphics cards. Salvation has emerged from cyberspace.

The popularity of artificial intelligence meant that some cryptocurrency mining companies decided to include a new use of computing power in their range of services. One of the best examples of such enterprises is Hive Blockchain, a company that until recently dealt only with mining cryptocurrencies. Her mine consisted of about 38,000 graphics cards, whose main task was to mine Ethereum. When ETH switched to Proof-of-Stake, the company faced a tough situation. Getting out of the impasse, however, turned out to be a global phenomenon, which has been constantly on the lips of the media and technology companies since the end of 2022.

Hive Blockchain now offers to rent the computing power of its GPUs for machine learning related to artificial intelligence. The company bet on the egalitarianism of its new service, because it is also available to small recipients (programmers, start-ups, universities, enterprises) that cannot afford the offers of industry giants such as Amazon Web Service or Microsoft Azure. Hive Blockchain also emphasizes that their main priority is the confidentiality of their customers' data.

Technical Market Outlook:

The bulls are clearly in control of the ETH market and they resumed the up trend again and made the last high at the level of $1,974. Nevertheless, just recently the bulls pulled-back from the recent highs and broke below the technical support located at the level of $1,930, so in a case of a bounce, this level will act as the intraday technical resistance. The momentum is currently weak and negative, so the pull-back is continued lower towards the level of $1,888 and $1,877.

Weekly Pivot Points:

WR3 - $2,044

WR2 - $1,999

WR1 - $1,980

Weekly Pivot - $1,954

WS1 - $1,935

WS2 - $1,909

WS3 - $1,854

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.