Crypto Industry Outlook:
After months of analysis by the US Senate and the US House of Representatives, the Infrastructure Act - which has been criticized by many cryptocurrency supporters - is now officially the law of the country.
At a ceremony outside the White House, President Joe Biden signed the infrastructure bill in front of an audience of journalists, lawmakers and trade unionists. While the two-party legislation aims to provide funding for roads, bridges, internet access, solar panels, electric vehicle charging stations and other large infrastructure projects, lawmakers included the language applicable to cryptocurrencies before it was passed in both houses of Congress.
The enacted law will implement stricter rules for cryptocurrency companies and expand reporting requirements for brokers. The Act requires that transactions involving digital assets in excess of $ 10,000 be reported to the IRS. A group of senators originally proposed an amendment to the law that would clarify the cryptocurrency tax reporting requirements, but the proposal was not approved.
Technical Market Outlook
The ETH/USD pair has bounced from the level of $4,059 which is just below the 161% Fibonacci projection for the wave 3/C seen at $4,145. The next target for bears is seen at the level of $3,888 (previous wave 4 low). The weak and negative momentum still support the short-term bearish outlook for ETH. The nearest technical resistance is seen at the level of $4,322. Please notice, the five wave impulsive increase might had been terminated at the level of $4,870 already and now might be the time for a deeper correction.
Weekly Pivot Points:
WR3 - $5,138
WR2 - $5,019
WR1 - $4,756
Weekly Pivot - $4,615
WS1 - $4,352
WS2 - $4,211
WS3 - $3,960
Trading Outlook:
The next long-term target for ETH is seen at the level of $5,000. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls. The level of $3,677 is the key mid-term technical support for bulls.
