FX.co ★ Technical Analysis of ETH/USD for September 1, 2023

Crypto Industry News:

BlackRock, one of the largest investment giants in the world, is dipping deeper and deeper into the Bitcoin mining industry. The latest figures show that the company has already become the second largest shareholder in four of the top five BTC mining companies by market capitalization. Are we witnessing the progressive centralization of the oldest cryptocurrency?

Despite the volatile landscape of the Bitcoin mining sector, with major players taking significant losses over the past month, not to mention the entire bear market, BlackRock seems to be adopting a downright contrarian strategy. The company's investments come at a time when increasing mining difficulties and costs are reducing profitability, especially for smaller players.

The top five Bitcoin miners with a combined market capitalization of $5.4 billion are Riot Platforms Inc, Marathon Digital Holdings Inc, Cipher Mining Inc, Hut 8 Mining Corp and Terawulf Inc. Among them, BlackRock has secured significant positions in all companies except Hut 8 Mining Corp.

In total, BlackRosk's investment in BTC mines is approximately USD 411.54 million, which is only 0.35% of BlackRock's assets, which in 2022 amounted to USD 117.6 billion.

However, this strategic maneuver is not limited to direct investment. BlackRock's commitment to the Bitcoin Mining Council is now more visible than ever before. This council, a key player in the Bitcoin mining industry, advocates the interests of the entire sector in the United States, and BlackRock's growing involvement in it suggests a serious increase in lobbying power.

BlackRock's recent moves indicate its unflagging interest in digital assets. The company, which oversees assets worth over $8 trillion, has already made headlines multiple times in recent months by applying for a spot exchange fund with BTC as the underlying asset. A financial behemoth more than anyone else has a chance of receiving a positive decision from the market regulator.

Technical Market Outlook:

The ETH/USD pair has made a new local high at the level of $1,744 and reversed back towards the trading range just two days after. The new local low was made at the level of $1,629, which is just $8 away from the first key technical support. The momentum is again weak and negative, so the short-term outlook for ETH remains bearish. The next technical support levels are located at $1,621, $1,579 and $1,525.

Weekly Pivot Points:

WR3 - $1,689

WR2 - $1,666

WR1 - $1,653

Weekly Pivot - $1,643

WS1 - $1,630

WS2 - $1,620

WS3 - $1,579

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.