FX.co ★ Technical Analysis of ETH/USD for February 28, 2023

Crypto Industry News:

Spotify, one of the largest streaming platforms in the world, is testing playlists with NFT (Non-Fungible Tokens) integration in its latest pilot program. This is another attempt to use NFT outside the art world, where tokens have become very popular as a form of collecting digital art and most likely a milestone for business and the entire cryptocurrency sector.

This functionality would allow the creation of playlists that will only be available to users with the appropriate NFT token. To use it, the user would have to connect his cryptocurrency wallet such as MetaMask or TrustWallet with an account with Spotify Premium functionality (this is a paid option to subscribe to an account on this platform). This would ensure that selected playlists would only be available to a narrow, elite audience who had previously decided to purchase a given NFT (for example, belonging to a specific artist or group of artists).

Among the projects taking part in the pilot program were such collection names as FLUF World (its avatars are very distinctive animated rabbits), Moonbirds (a project belonging to a well-known founder of Silicon Valley start-ups Kevin Rose), Kingship (a team belonging to the Bored Ape Yacht team Club) or Overlord.

Technical Market Outlook:

The Ethereum market has made a Bearish Engulfing candlestick pattern at the level of $1,664 and reversed lower to trade between the 50 and 100 MA on the H4 time frame chart. The intraday technical resistance is seen at the level of $1,677 and $1,680. Sustained breakout below the level of $1,487 would change the mid-term outlook to bearish, so please keep an eye on the $1,487 technical support (swing low). Any violation of this level would likely extend the drop towards $1,345, but in order to do this, the volatility must increase significantly.

Weekly Pivot Points:

WR3 - $1,672

WR2 - $1,654

WR1 - $1,642

Weekly Pivot - $1,635

WS1 - $1,624

WS2 - $1,616

WS3 - $1,581

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.