Crypto Industry News:
Almost all listed bitcoin mining companies have recorded since January 1 this year increase by over 100%. Their purchase turned out to be more profitable than investing in BTC.
Let's look at specific examples. A single share of Marathon Digital (MARA) is trading at $8.75 today. At the end of 2022, it was trading at $3.42.
MARA's competition is doing just as well. Iris Energy (IREN) and Riot Platforms (RIOT) posted equally impressive gains. On December 30, 2022, the price for one share of the first company was USD 1.25, today - USD 3.2. In turn, 1 Riot share cost approximately USD 3.4 at the end of last year, and today - USD 9.67.
Mining companies make money by running mining machines (the computer hardware that runs the Bitcoin network). In exchange for protecting the Bitcoin blockchain, they receive rewards in the form of BTC. In turn, as the value of BTC increases, the dollar-denominated value of these rewards also increases. In other words, as the price of the main cryptocurrency increases, the profits of blockchain miners increase.
Technical Market Outlook:
The ETH/USD pair has broken above the level of $1,752, which is the October high's and retraced 61% of the last wave down. The local high was made at the level of $1,848 (at the time of writing the article), but the next target for bulls is seen at the level of $1,874. The intraday technical resistance is seen at $1,802 and the intraday technical support is located at $1,752. Any violation of the level of $1,752 will open the road towards the key technical support seen at $1,520. The strong and positive momentum on the H4 time frame chart supports the short-term bullish outlook for ETH, however the market conditions are now extremely overbought on the H4 time frame chart.
Weekly Pivot Points:
WR3 - $1,777
WR2 - $1,729
WR1 - $1,707
Weekly Pivot - $1,681
WS1 - $1,659
WS2 - $1,632
WS3 - $1,584
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.
