After China banned all cryptocurrency mining activities, Norway became the most popular destination for mining operations. Now, Norway has issued a warning that it might ban mining activities for digital assets based on increased concerns about energy consumption. In addition, the chairman of the country has raised concerns over the energy consumption of proof-of-work (PoW) crypto mining and said that the issue must be taken care of as soon as possible. For this purpose, the government is looking into ways to ban crypto mining operations in the country. Meanwhile, the Indian Parliament also introduced a new regulatory law that will ban all private cryptocurrencies in the country and approve the creation of official digital currency. This law negatively impacted major crypto exchanges in the country, which in turn added downward pressure on ETH/USD. All these negative news reports from around the world have dragged the market mood surrounding the cryptocurrency industry.
Meanwhile, the latest warning issued by the IMF regarding the concerns of financial instability in El Salvador, given its decision to make bitcoin legal tender, also added to the negative market trend followed by the market. The agency said that there was no doubt that bitcoin and other digital assets provide efficient payments, but they could be a threat to the country’s financial system if one makes them legal tender. This warning added to the further loss in ETH/USD on Wednesday.
Moreover, Ethereum implemented the London hard fork upgrade about 111 days ago. The upgrade added a mechanism that changed Ethereum’s fee rate to a new scheme that makes the crypto asset ether deflationary. Since then, 1 million ETH has been burned, and this news kept the declining prices limited for the session on Wednesday.
Ethereum Technical Outlook – ETH/USD Supported Over $4,216
Daily Support and Resistance
Pivot Point: 4271.56
On the downside, $4,220 serves as an initial support level. On the same chart, there is a connecting bullish trend line of about $4,220. Let’s consider staying bullish over 4,220 and vice versa. Good luck!