Crypto Industry News:
The USDT finally recovered its peg against the USD on July 20, to a value of just under $ 1. Since then, it has remained stable. This is the first recorded case since the fall of the algorithmic stablecoin TerraUSD in early May this year.
The Terra ecosystem UST token, once the third largest stablecoin in the world, lost its link with the US dollar on May 12. This event created an immediate panic in the market for digital coins that were tied to the USD.
Tether also lost its peg to the US currency during this period and fell to $ 0.92 in some stock exchanges. After that, USDT managed to bear its price and held it at $ 0.99 throughout June.
As a result of these events, Tether's market capitalization fell by $ 16 billion and remained at $ 65 billion in two months. This was undeniably a signal of a large wave of sales of this cryptocurrency. This means that the issuing company of USDT - Tether Ltd - has honored redemption valued at billions of dollars after the UST crash. The stable coin giant has long been under fire for a lack of transparency over the assets backing its token.
As it turns out, USDT withstood a tough test of operation in extreme market conditions. Tether withstood the intensified sell-off on the onset of the bear market and eventually fully regained his peg.
Technical Market Outlook:
The ETH/USD pair is trying to bounce after 18.40% drop towards the level of $1,346. The market conditions are now below the level of fifty on the RSI indicator and the market is controlled by bears. The intraday technical support is seen on the level of $1,281. The larger time frame trend remains down, however the recent breakout might be a beginning of a bigger bounce even towards the level of $1,750 if the bulls will resume the rally after the pull-back.
Weekly Pivot Points:
WR3 - $1,776
WR2 - $1,660
WR1 - $1,592
Weekly Pivot - $1,545
WS1 - $1,476
WS2 - $1,429
WS3 - $1,313
Trading Outlook:
After the 13 consecutive weekly down candles on Ethereum, the down trend might have been terminated at the level of $880. 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, but the bulls had managed to increase the price of ETH by 90% so far. The next target for bulls is seen at the level of $1,710 and $1,954.
