Weekly market recap (from Feb 20th to Feb 26th)
Last week, the market popularity revolved around the Restaking and Points sectors. Many whales buy ETH and participate in restaking protocols like EigenLayer. This has increased the popularity of Ethereum, Optimism, Arbtirum and other chains, and the price of ETH has increased. Let ETH get out of the independent market. In the BTC ecosystem, Merlin Chain’s staking has driven BTC. This has also led to an interesting phenomenon. We have noticed from Glassnode that more and more funds are flowing into the crypto market, but they have not flowed into CEX but may have entered staking or restaking to HODL.
BTC
BTC remained fluctuating for most of last week, lagging behind ETH. But the bulls strengthened significantly yesterday, with BTC breaking above 52000 and sitting around the given resistance level.
From a 1D perspective, although BTC has risen, no whales have participated in the transaction. There are almost no blue bars visible on the WTA indicator. The trading volume was flat to average. We believe that the rise in prices is more likely to be caused by a decrease in selling pressure than an increase in purchasing power. The ME indicator continues to maintain the bullish trend.
At the 4h level, the strengthening of bulls makes the purple wavy area on the ME indicator gradually widen. Prominent blue bars are seen on the WTA indicator, and the bullish trend shows no signs of ending.
Taken together, the rise may not be over yet. We raised the resistance level to 60000 and maintained the original support level 48000.
ETH
ETH has been rising at an almost constant slope in February. It is rare to lead the increase of ARB and OP completely, so we define this time as a Restaking wave.
On the daily level, ETH is undoubtedly maintaining its bullish trend. The WTA indicator shows that whales have appeared on a large scale. Although it is not significant, it is better than BTC.
At the 4h level, we can see on the WTA indicator that whales appear on almost every bullish buildup as ETH rises. The ME indicator maintains the bullish trend.
To sum up, we believe that ETH’s rise is unlikely to end here. We maintain last week’s resistance level of 3300 and support level of 2700.
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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