Crypto Industry News:
As China battles cryptocurrency mining, prices for graphics cards from major GPU vendors such as Nvidia and Asus are becoming more affordable.
Some graphics cards have dropped by up to two-thirds on Chinese e-commerce platforms after Sichuan Province shut down its mining operations, according to today's South China Morning Post (SCMP) report.
The flagship card of the Asus RTX 3060 was reportedly lowered to $ 730 on Monday from a peak of $ 2,100 in May on the Tmall website operated by JD.com.
The Nvidia Quadro P1000, the less advanced card, dropped to $ 380 at the JD.com franchise store, down from a peak of around $ 470 in early May.
The fall in prices coincides with a major sell-off in the cryptocurrency market, with Bitcoin plunging to $ 32,500 in the wake of another wave of FUD in China.
The Chinese central bank recalled the ban on cryptocurrency trading, urging banks and payment institutions to suspend services for accounts related to cryptocurrency trading activities.
After banning cryptocurrency trading in 2017, the Chinese government tightened its stance on cryptocurrencies, starting a serious fight against cryptocurrency mining. The latest news concerns a series of mining bans in several major cryptocurrency mines in China, including hydroelectric provinces such as Sichuan and Yunnan. Xinjiang, Inner Mongolia and Qinghai authorities also ordered mining operations to be shut down.
Technical Market Outlook:
The ETH/USD pair has hit the technical support located at the level of $1,729 and bounced towards the level of $2,00, which is a technical resistance for the price. The recent price action looks like a V-shape reversal price pattern, nevertheless the bulls were capped at the level of $2,043 and the Pin Bars are being made just below the 38% Fibonacci retracement at $2,064. The nearest technical resistance is seen at the level of $2,102.
Weekly Pivot Points:
WR3 - $3,146
WR2 - $2,878
WR1 - $2,557
Weekly Pivot - $2,297
WS1 - $1,962
WS2 - $1,702
WS3 - $1,348
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.
