Crypto Industry News:
JPMorgan Chase & Co. warns in a note published last week that the cryptocurrency markets have limited opportunities for further gains. Stablecoins were put under the scrutiny.
JPMorgan views the share of stablecoins in the total market value of cryptocurrencies as an indicator of the potential for ups or downs. Previously, when stablecoins accounted for nearly 10% of the total capitalization of digital assets, JPMorgan analyst Nikolaos Panigirtzoglou said that "this indicates continued growth in the cryptocurrency markets."
In a note released last week, he explained:
"The share of stablecoins in total cryptocurrency market capitalization does not look large anymore ... It is now less than 7%, which brings it back into the 2020 trend. (...) As a result, we believe that any further increases for the cryptocurrency markets from here would probably be more limited".
Panigirtzoglou noted that the price of bitcoin (BTC) and ether (ETH) rose in early March after financial sanctions imposed on Russia by Western countries after its invasion of Ukraine.
Technical Market Outlook:
The ETH/USD pair has made a new high at the level of $3,582, but the rally was capped after the Shooting Star candlestick pattern was made and now the pair consolidating the recent gains. The nearest technical support is seen at the level of $3,438 and $3,385 and those levels are being tested by bears. The strong and positive momentum supports the short-term bullish outlook, so as long as the price stays above the technical support seen at $3,045, the bulls are in control of the market.
Weekly Pivot Points:
WR3 - $3,968
WR2 - $3,746
WR1 - $3,642
Weekly Pivot - $3,423
WS1 - $3,335
WS2 - $3,113
WS3 - $3,000
Trading Outlook:
The market has broken above the level of $3,192 which was the key Fibonacci retracement for bulls. The bulls re now in control of the market and are heading towards the 50% Fibonacci retracement on the weekly time frame chart located at $3,512.
