Crypto Industry News:
The New York State Senate approved a controversial Bitcoin Mining Ban (PoW) bill that prohibits all new mining operations in the state.
The PoW Mining Prohibition Act was first passed by the State Assembly in April. It aims to ban any new mining operations in the state for the next two years. Now the project is on the governor's desk, which, if approved, would make New York the first US state to introduce a moratorium on cryptocurrency mining.
The PoW Mining Consensus is mainly used by bitcoin miners and is considered to be one of the safest and most decentralized ways to mine. However, the practice is controversial because it requires an incredibly large amount of energy.
The law has passed because many senators express their concern about carbon dioxide emissions. The new regulations would not only prohibit new mining works, but also refuse to renew concessions to those who are already operational. Any new PoW mining activity that could only operate if it used 100% renewable energy.
The Bitcoin mining agreement mechanism has been one of the hottest topics of debate among policymakers backed by the environmental lobby and billionaires supporting a consensus on proof-of-the-stake mining, which is much less energy intensive.
Policymakers often focus only on the high energy consumption of Bitcoin miners, ignoring the fact that much of this energy comes from renewable sources, especially in New York City, where 50% is produced from renewable sources.
Criticism of the PoW mining industry took off last year. However, in late 2021, a report by the Bitcoin Mining Council, led by MicroStrategy, highlighted that more than 60% of the electricity consumed by the BTC network comes from clean sources.
Experts believe New York's decision to ban PoW mining would create a domino effect where other states could follow suit. The United States is currently the world leader in bitcoin mining speed, accounting for 38% of the network's mining capacity.
Technical Market Outlook:
The ETH/USD pair has bounced from the level of $1,729 and slowly moving upwards towards the technical resistance located at the level of $1,887. The down trend is still intact on the larger time frames like Daily and Weekly. In order to terminate the down trend, the bulls must break through the key short-term technical resistance located at the level of $2,199. The nearest technical support is seen at $1,729 and $1,701 (monthly low).
Weekly Pivot Points:
WR3 - $2,200
WR2 - $2,120
WR1 - $1,939
Weekly Pivot - $1,827
WS1 - $1,666
WS2 - $1,570
WS3 - $1,388
Trading Outlook:
The down trend on the H4, Daily and Weekly time frames had broken below the key long term technical support seen at the level of $2,000 and bears continue to make new lower lows with no problem whatsoever. So far every bounce and attempt to rally is being used to sell Ethereum for a better price by the market participants, so the bearish pressure is still high. The next target for bears is located at the level of $1,420.
