Crypto Industry News:
Bank of America Corporation (BoA) has published a report talking about the optimistic long-term outlook for cryptocurrencies.
The report was published by BoA's subsidiary BofA, which deals with the digital sector.
The report said the $ 2.15 trillion cryptocurrency market capitalization is "too big to ignore," stressing that the digital asset ecosystem has evolved.
The report characterizes the sector as one, which includes "tokens that act like operating systems, decentralized applications (DApps), stablecoins linked to fiat currencies, CBDC replacing national currencies, and NFTs that enable links between creators and fans.
Another point was that venture capital in the crypto and blockchain sector grew dramatically in 2021, where over $ 17 billion invested in the industry in the first half of this year is more than three times the $ 5.5 billion invested in this sector during the past year.
The report also highlighted the recent soaring rates of cryptocurrency adoption, estimating that 221 million users worldwide were trading cryptocurrency or using blockchain applications in June 2021, up from 66 million in May.
Looking at the NFT, BoA concludes that the sector's dynamic growth surprised even seasoned cryptocurrency users, highlighting that the OpenSea market generated over $ 2.5 billion in the first half of 2021.
However, the report warns of the volatility associated with the emerging non-exchangeable token sector, stating that the elevated risk in this segment must be fully understood before the NFT can achieve true adoption.
Technical Market Outlook:
The ETH/USD pair has made a new local high at the level of $3,546, but the rally ended with a Pin Bar candlestick formation for the second time in a row, so a temporary pull-back towards the level of $3,252 might be in progress. The key short-term technical support is located at the level of $3,173 and the next target for bulls is seen at the level of $3,552. Please notice the bearish divergence between the price and the momentum oscillator supports the short-term bearish view.
Weekly Pivot Points:
WR3 - $4,444
WR2 - $3,970
WR1 - $3,761
Weekly Pivot - $3,277
WS1 - $3,057
WS2 - $2,590
WS3 - $2,360
Trading Outlook:
Ethereum have started the next wave up and violated the long-term target at the level of $3,550. The next long-term target for ETH is seen at the level of $4,394. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls.