Crypto Industry News:

Kazakhstan, one of the world leaders in cryptocurrency mining, is taking a step towards establishing a comprehensive fiscal framework for cryptocurrency mining operators.

The lower house of the Mejlis of the Kazakh parliament today passed amendments to the national tax code in first reading, regulating the fiscal burden of mining cryptocurrencies. These changes suggest graduated tax rates linked to the prices of electricity consumed by miners.

For example, the cheapest electricity price class, 5 to 10 tenge ($ 0.012–0.024) per Kwh, would entail an additional burden of 10 tenge ($ 0.024). For 10-15 tenge ($ 0.024-0.036) per kWh, the tax would be 7 tenge ($ 0.017), and for 20-25 tenge ($ 0.048-0.060) per kWh, it would be 3 tenge ($ 0.0072).

The proposed amendments go beyond an earlier initiative to raise the price of electricity from $ 0.0023 per kWh to $ 0.01 for cryptocurrency miners, unveiled in February by Kazakhstan's deputy finance minister Marat Sultangaziyev.

The Chamber indicated that the changes are also aimed at creating an incentive to use renewable energy sources. For green energy, the tax would be only 1 tenge ($ 0.0024) regardless of the cost of electricity.

As stated by the Minister of Economy of Kazakhstan, Alibek Kyantyrov, the measures are aimed at "balancing the burden and destimulating consumption of private energy sources".

Technical Market Outlook:

The ETH/USD pair is getting close to the range low located at the level of $1,887 after a failed breakout out of the range. The next target for bears is seen at the levels of $1,887 and 1,873. The nearest technical resistance is seen at $2,106 and $2,199, but the weak and negative momentum still supports the short-term bearish outlook. The market keeps making lower lows and lower highs on the H4 time frame chart, so the down trend intact.

Weekly Pivot Points:

WR3 - $2,386

WR2 - $2,268

WR1 - $2,122

Weekly Pivot - $2,009

WS1 - $1,865

WS2 - $1,755

WS3 - $1,597

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 continues to make new lower lows with no problems 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.