Crypto Industry News:
One of the world's largest investment funds managing assets worth USD 4.5 trillion is interested in cryptocurrencies, although (or maybe because of) Bitcoin in 2022 recorded its worst annual result since 2018. To make matters worse, the collapse of cryptocurrency broker FTX, although it hit BTC directly, chased tons of investors and funds out of the cryptocurrency scene. Despite this, powerful financial institutions still see opportunity in cryptocurrencies and the universe of digital assets. Fidelity, the Boston-based giant, also announced plans to add 500 cryptocurrency-related jobs by the end of the first quarter of 2023. In theory, the timing of these moves is bad simply because of Bitcoin's decline in 2022 and the collapse of FTX, among other factors, but Fidelity sees long-term opportunities that could be constructive for the broader cryptocurrency market.
Last year, it began offering BTC service in employee 401(k) plans and increased its Ethereum trading capabilities. It is the second-largest digital asset behind Bitcoin, which is also approaching its worst annual performance since 2018. Despite the decline, the investment giant Fidelity Investments has filed trademark applications in the United States for a number of Web3 products and services, including the NFT token market and financial investment and cryptocurrency trading services. This follows three trademark applications filed with the United States Patent Trademark Office (USPTO) on December 21, highlighted by licensed trademark attorney Mike Kondoudis in a December 27 tweet.
Technical Market Outlook:
The Ethereum cryptocurrency has retraced 61% of the last wave down on the H4 time frame chart and is currently trading below this level after the Bearish Engulfing candlestick pattern was made. The market is consolidating the recent gains in a narrow range located between the levels of $1,265 - $1,251. The technical resistance is seen at the level of $1,259, so bulls need to break through this level in order to continue the bounce towards the technical resistance seen at $1,278. The key short-term technical support is seen at the level of $1,183. Please notice the spike in the momentum indicator on the H4 time frame chart to the extremely overbought market territory.
Weekly Pivot Points:
WR3 - $1,258
WR2 - $1,232
WR1 - $1,220
Weekly Pivot - $1,205
WS1 - $1,191
WS2 - $1,178
WS3 - $1,152
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. The key technical support for bulls at $1,281 was broken already and the new swing low was established at $1,074. There is a clear test of the 50 WMA located at the level of $1,080, so any breakout below the moving average and a weekly candle close below moving average will be considered as another indication of the down trend continuation. If the down move will be extended, then the next target for bears is located at the level of $1,000.
