Crypto Industry News:
Wall Street banking giant Goldman Sachs has announced that its first-ever Bitcoin-backed loan has been granted to Coinbase. However, neither party disclosed the amount and other details of the transaction.
Bitcoin Backed Lending is not unusual for crypto companies and decentralized protocols that use "wrapped bitcoin" for Ethereum-based applications. However, Goldman's green light decision on such a loan to Coinbase could indicate Wall Street is shifting to that asset class.
Brett Tejpaul, head of Coinbase Institutional, said the partnership is the first step in recognizing cryptocurrencies as a security that deepens the bridge between the fiat economy and the cryptocurrency.
In addition to the banking giant, small crypto-friendly banks such as Silvergate Bank and Signature Bank have offered clients loans secured by cryptocurrencies.
In recent months, Goldman Sachs' entry into cryptocurrencies has become aggressive. The company announced last month plans to add an OTC Ethereum option to this offering. The bank's analysts cite the upcoming "merger" of ETH and the upgrade to the proof-of-stake version as the main catalyst for growth,
Technical Market Outlook:
The ETH/USD pair has broken above the short-term trend line resistnace around the level of $2,880, but in order to make a full V-shape reversal, the bulls must break above the last high seen at the level of $3,178. The local high was made at the level of $2,966. The nearest technical resistance is seen at $2,979 and the immediate technical support is located at $2,767 and $2,753. The weak and negative momentum supports the short-term bearish outlook with a new target for bears seen at the level of $2,503. The market keeps making lower lows and lower highs on the H4 time frame chart, so the down trend is intact.
Weekly Pivot Points:
WR3 - $3,297
WR2 - $3,159
WR1 - $2,964
Weekly Pivot - $2,841
WS1 - $2,649
WS2 - $2,518
WS3 - $2,324
Trading Outlook:
The down trend on the H4, Daily and Weekly time frames continues 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 key long term technical support is seen at the level of $2,646.