FX.co ★ Technical Analysis of ETH/USD for March 28, 2022

Crypto Industry News:

Cryptocurrency adoption now takes many forms, but countries and cities seem to be becoming more and more open to the idea of allowing certain payments to be made using such assets. Brazil's second-largest city has announced that it wants to become the first in the country to accept BTC payments for taxes. Residents of Rio de Janerio will be able to pay IPTU (Imposto Sobre a Propriedade Predial e Territorial Urbana) with digital assets from next year.

The commune wants to cooperate with companies that specialize in converting cryptocurrencies to the Brazilian real, we read in the note of the City Hall. This means when locals donate crypto funds they will be automatically converted to fiat money.

In January, the city's mayor introduced a working group focused on accelerating the use of cryptocurrencies to boost the local economy. A memo from the City Hall outlined the creation of the Municipal Cryptographic Investments Committee (CMCI), which will mitigate risk and develop a regulatory framework.

The report said that the city also wanted to enter the world of non-exchangeable tokens. There have been suggestions for creating an NFT with images of tourist attractions.

Brazil was among the more open-minded nations in the digital asset industry, including one of the first bitcoin ETFs last year. In addition, in February 2022 there were reports that it was stated that the Senate was getting ready to vote on the law regulating cryptocurrencies.

A September 2021 poll, shortly after El Salvador legalized Bitcoin, found that nearly half of Brazilians support the idea of adopting the most popular cryptocurrency.

Technical Market Outlook:

The ETH/USD pair has made a new high at the level of $3,339 (at the time of writing the article)a s it was moving up all weekend long. The nearest technical support is seen at the level of $3,287 and $3,234. In a case of a further breakout higher, the next target for bulls is the supply zone located between the levels of $3,385 and $3,348. As long as the price stays above the technical support seen at $3,045 the outlook is bullish. The strong and positive momentum supports the bullish outlook.

Weekly Pivot Points:

WR3 - $3,836

WR2 - $3,556

WR1 - $3,407

Weekly Pivot - $3,131

WS1 - $3,010

WS2 - $2,712

WS3 - $2,604

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.