Weekly market recap (from Apr.23rd to 29th)
The main narrative in the crypto market will focus on ETH next.
One aspect is the approval of the ETH ETF. It can be seen from the current schedule given by the SEC that the earliest deadline for ETH ETF is May 23, while for BlackRock, the deadline for ETH ETF will not be until the third quarter. Compared with BTC, ETH is more difficult to pass based on its POS and staking model. Judging from the SEC’s recent public statements and sending Wells Notice to Uniswap, they do not want to simply approve the ETH ETF. However, we believe BlackRock’s application is still more likely to be approved.
On the other hand is the LRT track. Eigenlayer recently announced its airdrop plan for May. As we all know, after EigenLayer launched restaking, a large number of funds entered the LRT sector to obtain potential airdrops. However, when EL is airdropped, funds may quickly take a position, forming selling pressure on ETH.
BTC
BTC has experienced a correction over the past week after experiencing a rebound. This has a lot to do with what we mentioned last week about whether there is whale support. Despite the decline, BTC held above-given support levels and did not see significant trading volume during the pullback. We can also see from the WTA indicator that there is no blue column representing whales, and the response of whales is dull. The ME indicator continues to remain bullish but is narrowing.
To sum up, we believe that BTC may remain volatile in the coming week. We maintain our original resistance level of 74000 and support level of 72000.
ETH
ETH performed stronger than BTC last week but did not break above 3300. During the past week’s rally, ETH’s trading volume has been below its average. Judging from the WTA indicator, the rebound is not supported by whales. And the ME indicator, which represents a bullish trend, continues to narrow.
To sum up, we believe that ETH is still in the process of a large-scale correction. It is likely to fluctuate over the coming week. We retain the original resistance level of 3700 and support level of 2800.
Disclaimer: Nothing in the article constitutes investment advice. The article objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions based on the information contained in the article are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
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