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Breaking: Spot Bitcoin And Ethereum ETFs Approved In Hong Kong

The Hong Kong Securities and Futures Commission (SFC) has officially approved several spot Bitcoin and Ethereum exchange-traded funds (ETFs), a decision that marks a significant development in the region’s burgeoning crypto market. These approvals were granted to prominent asset managers including China Asset Management, Bosera Capital, and HashKey Capital Limited, alongside an in-principle approval for Harvest Global Investments.

Hong Kong’s SFC Approves Bitcoin And ETH ETFs

China Asset Management’s Hong Kong unit, as detailed in their press release, has received SFC approval to launch spot Bitcoin and Ethereum ETFs. This initiative is part of a collaboration with OSL Digital Securities Limited and BOCI International, aiming to provide retail asset management services with direct cryptocurrency subscriptions.

Similarly, Bosera Asset Management and HashKey Capital have announced that they have received conditional approval from the SFC for their own spot crypto ETFs. These products, named the Bosera HashKey Bitcoin ETF and the Bosera HashKey Ether ETF, will allow investors to directly use Bitcoin and Ethereum to subscribe for ETF shares, as stated in their press release.

Harvest Global Investments has also been spotlighted with the SFC’s in-principle nod for two major digital asset spot ETFs. According to their press release, Mr. Tongli Han, CEO and CIO of Harvest Global Investments, remarked, “This in-principle approval for Harvest Global Investments’ products in two major digital asset spot ETFs not only underscores Hong Kong’s competitive edge in the digital asset space, but also demonstrates our unrelenting pursuit of promoting innovation in the industry and meeting diversified investor needs.”

These ETFs are set to be launched through a partnership with OSL Digital Securities, the first digital asset platform licensed and insured by the SFC, highlighting a significant stride in addressing common market challenges such as excessive margin requirements and price premiums.

The press release from Bosera and HashKey highlights that the introduction of these virtual asset spot ETFs will not only provide new asset allocation opportunities but also reinforce Hong Kong’s status as an international financial center and a hub for virtual assets. This move is aligned with the city’s strategic push to establish itself as a regional leader in financial innovation, particularly in the digital asset sector.

The approvals are indicative of Hong Kong’s progressive regulatory framework which aims to integrate digital assets within its financial ecosystem safely and securely. The establishment of these ETFs is expected to provide a regulated, innovative investment avenue for both retail and institutional investors in the region. While there is not as much hype as there is around US ETFs, some analysts believe the impact could be similar.

These approvals come on the heels of rumors last Friday about the potential approval of these ETFs. The market had been abuzz with speculations, and today’s confirmation has provided the Bitcoin and ETH prices with a much needed boost. BTC is up 2.2% since the announcement, surpassing the $66,000 mark. The approved ETFs are reportedly set to launch by the end of April.

At press time, BTC traded at $66,535.

Bitcoin price

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Ethereum Price Reclaims $3K But Can ETH Continue Higher?

Ethereum price dived over 10% before the bulls appeared near $2,550. ETH is back above $3,000 and now faces many hurdles near $3,200.

  • Ethereum is attempting a recovery wave from the $2,550 support zone.
  • The price is trading below $3,250 and the 100-hourly Simple Moving Average.
  • There is a rising channel forming with resistance at $3,200 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could gain bullish momentum if it stays above the $3,000 support zone.

Ethereum Price Eyes Recovery Wave

Ethereum price started a major decline from the $3,550 resistance. ETH declined over 10% and traded below the $3,000 support. It even spiked below $2,750 and tested $2,550.

A low was formed near $2,537 and the price is now attempting a recovery wave, like Bitcoin. The price climbed above the $2,800 and $3,000 resistance levels. It even surpassed the 50% Fib retracement level of the downward move from the $3,615 swing high to the $2,537 low.

Ethereum is now trading below $3,250 and the 100-hourly Simple Moving Average. Immediate resistance is near the $3,200 level or the 61.8% Fib retracement level of the downward move from the $3,615 swing high to the $2,537 low. There is also a rising channel forming with resistance at $3,200 on the hourly chart of ETH/USD.

Ethereum Price

Source: ETHUSD on TradingView.com

The first major resistance is near the $3,250 level. The next key resistance sits at $3,300, above which the price might test the $3,360 level. The key hurdle could be $3,500, above which Ether could gain bullish momentum. In the stated case, the price could rise toward the $3,620 zone. If there is a move above the $3,620 resistance, Ethereum could even rise toward the $3,750 resistance.

Another Decline In ETH?

If Ethereum fails to clear the $3,250 resistance, it could start another decline. Initial support on the downside is near the $3,080 level.

The first major support is near the $3,000 zone. The next key support could be the $2,880 zone. A clear move below the $2,880 support might send the price toward $2,750. Any more losses might send the price toward the $2,550 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $3,000

Major Resistance Level – $3,250

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Ethereum Whales Go On Buying Spree As Market Crash Leaves Retail Panicking

Ethereum, one of the leading cryptocurrencies, finds itself amidst a price decline alongside the broader crypto industry. This downturn has been exacerbated by escalating tensions in the Middle East, casting a shadow of uncertainty over the market. As the majority of cryptocurrencies experience a bleed in value, Ethereum is not immune to the trend. However, while retail investors panic-sell their holdings, on-chain data presents a different picture. Big player whales in the market are seizing the opportunity to accumulate assets, displaying a bullish sentiment amid the turmoil.

Particularly, on-chain data from Lookonchain has shown an Ethereum whale accumulating during the price decline. Interestingly, the timeline of accumulation suggests that this whale has been in action even before the escalating tensions in the Middle East.

Ethereum Whales Accumulate During Market Downturn

On-chain transaction tracker Lookonchain has noted both a selloff and accumulation trend from different Ethereum whales in the past few days. One of the latest accumulations came from a whale that has been on constant withdrawals from crypto exchange Binance.

As revealed by Lookonchain, whale “0x4359” has withdrawn 62,141 ETH worth $202.6 million from Binance in the past five days. This whale’s latest withdrawal from Binance was less than 12 hours ago, where they withdrew 37,018 ETH worth $120.7 million.

Ethereum on the other hand, has fallen from $3,722 to as low as $2,866 in the last five days, representing a 23% price decline. In a similar manner, 7,300 ETH worth $23.8 million were transferred from Binance into “0xE347,” a newly created whale wallet. 

That said, Lookonchain also noted a trend of whales selling off their holdings. One example of such selloffs came from whale address “0xaF35” who deposited 6,700 ETH worth $23.65 million into Binance immediately before the price drop. It’s important to note that this same whale withdrew 26,698 ETH worth $94.3 million from Binance between Feb. 7 and April 1.

In another social media post, Lookonchain revealed four whales dumping 31,683 ETH worth $106 million during the price drop.

What’s Next For Ethereum?

The ETH accumulation and selloffs from different whale cohorts highlight the contrasting trading strategies between large holders of the crypto asset. While some are selling off, others are taking advantage of the low prices and buying the dip. 

It would seem the whale accumulation is still outweighing selloffs from their counterparts at the time of writing. Despite this, a selloff from retail investors has tipped the price action in favor of the bears. As a result, Ethereum now finds itself trading around the $3,000 price level, which remains a crucial price level.

A continued accumulation from whales could eventually tip the price of Ethereum to the side of the bulls as tensions in the global market start to subside. We could then see Ethereum hold up above $3,000 and surge upwards at least till it reaches $3,200. A continued selloff could lead to a further price decline, causing Ethereum to break below $3,000.

Featured image from Pexels, chart from TradingView

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Traders Forecast Massive Rally For Altcoins, But Why Is Sentiment “Down”?

Bitcoin’s correction at the start of Q2 dragged down the Altcoins market, and a “gloomy” sentiment appears to surround investors despite Q1 2024 registering one of the best performances for the crypto market. As prices recover momentum, traders and analysts suggest a brighter future might be around the corner.

Altcoins Next Stop: Altseason?

On Friday, some traders shared optimistic forecasts for altcoins. According to investor Crypto Jelle, the altcoin market cap chart “looks primed to go on a massive rally in the coming months.”

The investor highlights the similarities between the altcoin’s performance during the previous bull runs. Per the chart, after 2018’s all-time high (ATH) of $474.5 billion, the altcoin market consolidated under the resistance zone in “preparation” for the next bull run.

Altcoins, crypto

During the 2020-2021 bull market, altcoins’ market cap broke out and consolidated around a new support zone before continuing its upward trajectory to its last ATH of $1.7 trillion.

As the investor highlighted, altcoins’ performance looks like that of the previous bull run. They are seemingly consolidating after a breakout from the resistance zone. If history were to repeat itself, then altcoins could “remind everyone what they’re capable of.”

Another trader and analyst, Titan of Crypto, shared a similar prediction to Jelle’s. According to the analysts, he’s seen crypto community members believing that “there’ll never be another altseason.”

To those in doubt, the trader suggests they “zoom out” to get a broader perspective on where the market is in the cycle. Per his chart, which excludes Ether (ETH), altcoins are at the “2 bullish monthly candles followed by consolidation” phase.

altcoins, crypto

The chart also suggests that the subsequent run-up could surpass the $1.13 trillion ATH and soar to a market cap of $3.25 trillion in the coming months. To the analyst, the “#Altseason2024 is inevitable.”

Predictions Are Up, Why Is The Sentiment Down?

Across different platforms, the sentiment seems to lean towards “negative” despite the optimistic forecasts. Follis, content creator and founder of Chroma Trading shared his experience on X this Thursday.

According to the post, “sentiment at the moment is some of the worst” he’s seen during his years in the crypto community. Moreover, he considers “engagement is dead” as “everyone is quiet” across X, Discord, and Twitch.

The post opened a discussion as to what could be the reason. Follis suggested a combination of “over-leveraged top longers” and “traders who expected price to go up indefinitely.”

Another user weighed in, suggesting traders lost significant money buying high and selling low on Solana and Base memecoins.

Top crypto trader Ansem joined the discussion, disagreeing with the “depressing” take on the current market. The trader pointed out that BTC was at $70,000 and ETH at $3,500 at the time of his post. These prices represent a 129.8% and 82.5% increase in the past year.

Similarly, he highlighted the performance of SOL compared to the bear market bottom and the remarkable performance of memecoins in the past six months. Many users agreed that drawdowns are usual during market cycles and ultimately suggested looking at the bigger picture.

Altcoins, market cap

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Ethereum Price Faces Crucial Test, Can ETH Clear This Hurdle To Kickstart Rally?

Ethereum price is consolidating above the $3,450 support zone. ETH must clear $3,560 and $3,620 to start a fresh increase in the near term.

  • Ethereum is trading in a range above the $3,450 support zone.
  • The price is trading above $3,500 and the 100-hourly Simple Moving Average.
  • There is a new connecting bearish trend line forming with resistance at $3,550 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could gain bullish momentum if it stays above the $3,420 support zone.

Ethereum Price Eyes Upside Break

Ethereum price attempted another increase above the $3,550 resistance. ETH even climbed above $3,600, but the upsides were limited like Bitcoin. A high was formed at $3,614 before the price trimmed gains.

It declined below $3,500 and treaded as low as $3,476. The price is again recovering and moving above $3,500. There was a move above the 23.6% Fib retracement level of the recent decline from the $3,614 swing high to the $3,476 low.

Ethereum is now trading above $3,500 and the 100-hourly Simple Moving Average. Immediate resistance is near the $3,550 level or the 50% Fib retracement level of the recent decline from the $3,614 swing high to the $3,476 low. There is also a new connecting bearish trend line forming with resistance at $3,550 on the hourly chart of ETH/USD.

Ethereum Price

Source: ETHUSD on TradingView.com

The first major resistance is near the $3,620 level. The next key resistance sits at $3,650, above which the price might test the $3,720 level. The key hurdle could be $3,750, above which Ether could gain bullish momentum. In the stated case, the price could rise toward the $3,820 zone. If there is a move above the $3,820 resistance, Ethereum could even rise toward the $4,000 resistance.

Another Rejection In ETH?

If Ethereum fails to clear the $3,550 resistance, it could start another decline. Initial support on the downside is near the $3,500 level.

The first major support is near the $3,475 zone. The next key support could be the $3,420 zone. A clear move below the $3,420 support might send the price toward $3,320. Any more losses might send the price toward the $3,240 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $3,475

Major Resistance Level – $3,550

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CEO Throws Cold Water On May Ethereum ETF Approval – Impact On Price

The much-anticipated arrival of spot Ethereum exchange-traded funds (ETFs) in the US seems to be hitting a snag. Industry leaders are voicing growing concerns about the likelihood of securing regulatory approval from the Securities and Exchange Commission (SEC), with a deafening silence from the agency fueling anxieties.

Jan van Eck, CEO of investment firm VanEck, recently cast a shadow of doubt on the possibility of SEC approval for spot Ether ETFs in May. In a CNBC interview, van Eck expressed his belief that their application would likely be rejected, citing a complete lack of communication from the regulatory body.

This sentiment finds an echo in the words of Eric Balchunas, a Senior Bloomberg ETF analyst, who has significantly downgraded his odds of approval to a mere 35%. Balchunas attributes this pessimism to the ongoing “radio silence” between the SEC and fund issuers.

Ethereum ETF Applications Languish In SEC Limbo

The SEC’s lack of response extends beyond van Eck’s application. Seven other proposals for spot Ether ETFs are currently gathering dust, with no indication of progress. This regulatory purgatory is fueling skepticism among industry commentators. CoinShares CEO Jean-Marie Mognetti believes that approval for any of these applications is unlikely “this side of the year,” further amplifying the prevailing uncertainty.

The current roadblock for Ethereum ETFs stands in stark contrast to the success story of Bitcoin ETFs. The SEC’s green light for Bitcoin ETFs offered a glimmer of hope for the cryptocurrency market. Van Eck highlights the growing interest in Bitcoin as a “maturing asset class,” with significant untapped investor demand.

Notably, VanEck’s own spot Bitcoin ETF, known by the ticker HODL, has witnessed significant inflows since its launch in mid-January, signifying a strong investor appetite for crypto exposure.

Lack Of Clarity Creates Murky Investment Landscape

The lack of interaction from the SEC is a major concern for James Seyffart, another analyst in the field. He emphasizes that “zero comments or interactions from the SEC is a bad sign.” This sentiment suggests a troubling trend in the approval process, further dampening hopes for a swift resolution on the Ethereum ETF front.

Despite the current cloud of uncertainty surrounding Ethereum ETFs, the cryptocurrency market continues to experience growth and gain wider acceptance. This indicates that opportunities for investment diversification in the digital realm are on the rise.

However, until the SEC sheds light on its stance, investors and industry stakeholders will be forced to navigate a landscape fraught with uncertainty and intense regulatory scrutiny.

The path forward for Ethereum ETFs remains shrouded in doubt. The SEC’s silence is deafening, and industry leaders are bracing for potential rejection. With a lack of clear communication and mounting skepticism, investors are left facing a blank wall, waiting for a sign from the SEC.

Featured image from Micoope, chart from TradingView

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Ethereum Price Prints Bullish Pattern, Why Close Above $3,600 Is Critical

Ethereum price stayed above the $3,400 support zone. ETH is recovering losses, but it must clear $3,600 to continue higher in the near term.

  • Ethereum extended its decline and tested the $3,400 support zone.
  • The price is trading above $3,500 and the 100-hourly Simple Moving Average.
  • There was a break above a connecting bearish trend line with resistance at $3,500 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could gain bullish momentum if it stays above the $3,500 support zone.

Ethereum Price Aims Higher

Ethereum price extended its decline below the $3,500 level. ETH even spiked below the $3,450 support before the bulls appeared. The price traded as low as $3,408 and recently started a recovery wave, like Bitcoin.

There was a move above the $3,500 resistance zone. The price climbed and tested the 50% Fib retracement level of the downward move from the $3,726 swing high to the $3,408 low. Besides, there was a break above a connecting bearish trend line with resistance at $3,500 on the hourly chart of ETH/USD.

Ethereum is now trading near $3,500 and the 100-hourly Simple Moving Average. Immediate resistance is near the $3,600 level or the 61.8% Fib retracement level of the downward move from the $3,726 swing high to the $3,408 low.

Ethereum Price

Source: ETHUSD on TradingView.com

The first major resistance is near the $3,650 level. The next key resistance sits at $3,725, above which the price might test the $3,780 level. The key hurdle could be $3,800, above which Ether could gain bullish momentum. In the stated case, the price could rise toward the $3,880 zone. If there is a move above the $3,880 resistance, Ethereum could even rise toward the $4,000 resistance.

Another Decline In ETH?

If Ethereum fails to clear the $3,600 resistance, it could start another decline. Initial support on the downside is near the $3,520 level.

The first major support is near the $3,500 zone. The next key support could be the $3,400 zone. A clear move below the $3,400 support might send the price toward $3,320. Any more losses might send the price toward the $3,240 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $3,520

Major Resistance Level – $3,600

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Changing Tides: Restaking Takes Center Stage In Ethereum (ETH) Staking Landscape

In recent months, the Ethereum staking landscape has witnessed significant transformations, prompting a shift in investor preferences and reshaping the sector’s dynamics. 

According to on-chain data researcher and strategist at 21Shares, Tom Wan, key metrics indicate a notable change in the approach towards Ethereum staking, with restaking gaining prominence as a preferred method.

Ethereum Restaking Landscape

Wan’s observations, shared on the social media platform X (formerly Twitter), highlight a steady increase in ETH staking deposits from restaking, rising from 10% to 60% since 2024. 

Restaking can be accomplished in two primary ways: through ETH natively restaked or by utilizing a liquid staking token (LST). By staking their ETH, users secure additional applications known as Actively Validated Services (AVS), which yield additional staking rewards.

A significant player in the staking landscape is EigenLayer, which has emerged as the second-largest decentralized finance (DeFi) protocol on the Ethereum network. 

EigenLayer has achieved a significant milestone with the release of EigenDA, its data availability Actively Validated Service (AVS), on the mainnet. 

According to a research report by Kairos, this launch marks the beginning of a new era in restaking, where liquid restaking tokens (LRTs) will become the dominant way for restakers to do business. 

Currently, 73% of all deposits on EigenLayer are made through liquid restaking tokens. The report highlights that the growth rate of LRT deposits has been significant, increasing by over 13,800% in less than four months, from approximately $71.74 million on December 1, 2023, to $10 billion on April 9, 2024, demonstrating the growing confidence in EigenLayer’s approach to restaking and contributing to the shifting tides in Ethereum’s staking landscape. 

According to Wan, the rise of liquid restaking protocols has also contributed to a decline in the dominance of Lido (LDO), a staking service solution for Solana (SOL), Ethereum, and Terra (LUNC). 

On the other hand, Etherfi has emerged as the second-largest stETH withdrawer, with 108,000 stETH withdrawn through the first quarter of 2024. This trend exemplifies the increasing popularity of liquid restaking protocols, allowing stakers to withdraw and actively utilize their staked assets while still earning rewards.

Ether.fi Set To Surpass Binance In ETH Staking

Data provided by Wan also shows a decline in the dominance of centralized exchanges (CEXs) in ETH staking. Since 2024, CEXs have seen their share of staking decline from 29.7% to 25.8%, a significant drop of 3.7%. 

As a result, the decentralized staking provider Kiln Finance has surpassed Binance and become the third-largest entity in terms of ETH staking. With Ether.fi poised to follow suit, it is expected to surpass Binance’s position shortly, according to the researcher. 

In short, these developments signify a paradigm shift in the Ethereum staking landscape, with re-staking methodologies gaining traction and decentralized protocols like EigenLayer and Ether.fi challenging the dominance of established players. 

Ethereum

As of this writing, ETH’s price stands at $3,500. It has been exhibiting a sideways trading pattern over the past 24 hours, remaining relatively stable compared to yesterday.

Featured image from Shutterstock, chart from TradingView.com 

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Ethereum Price Trims Gains, Are Dips Still Attractive In Near Term?

Ethereum price failed to continue higher above the $3,725 resistance zone. ETH trimmed gains and now consolidates near the $3,475 support.

  • Ethereum failed to climb higher above the $3,725 resistance level.
  • The price is trading near $3,500 and the 100-hourly Simple Moving Average.
  • There was a break below a key bullish trend line with support at $3,510 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh increase if it stays above the $3,420 support zone.

Ethereum Price Faces Rejection

Ethereum price started a decent increase above the $3,550 resistance. ETH even cleared the $3,650 resistance zone, but the bears were active near $3,725. A high was formed at $3,726 and the price started a fresh decline, like Bitcoin.

There was a move below the $3,600 and $3,550 levels. There was a break below a key bullish trend line with support at $3,510 on the hourly chart of ETH/USD. The pair even spiked below the 50% Fib retracement level of the upward move from the $3,224 swing low to the $3,726 low.

Ethereum is now trading near $3,500 and the 100-hourly Simple Moving Average. Immediate resistance is near the $3,520 level. The first major resistance is near the $3,560 level. The next key resistance sits at $3,610, above which the price might test the $3,650 level.

Ethereum Price

Source: ETHUSD on TradingView.com

The main resistance is now near $3,725, above which Ether could gain bullish momentum. In the stated case, the price could rise toward the $3,800 zone. If there is a move above the $3,800 resistance, Ethereum could even rise toward the $4,000 resistance.

More Losses In ETH?

If Ethereum fails to clear the $3,610 resistance, it could continue to move down. Initial support on the downside is near the $3,475 level.

The first major support is near the $3,420 zone or the 61.8% Fib retracement level of the upward move from the $3,224 swing low to the $3,726 low. The next key support could be the $3,340 zone. A clear move below the $3,340 support might send the price toward $3,240. Any more losses might send the price toward the $3,120 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $3,420

Major Resistance Level – $3,610

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Ethena’s (ENA) Crucial Role In Bitcoin Bull Market: Expert Identifies Critical Factors For Sustainable Growth

The recent volatility in the Bitcoin (BTC) price and its struggle to consolidate above the $70,000 mark has raised questions about the sustainability of its ongoing bull run.

However, market expert Charles Edwards, co-founder of Capriole Invest, believes that the decentralized finance (DeFi) protocol Ethena Labs (ENA) could significantly extend and boost Bitcoin’s bull market to new heights. 

In a recent post on social media site X (formerly Twitter), Edwards suggested that Ethena’s actions, such as constraining over-leverage in derivatives markets and reducing spot supply, can propel Bitcoin’s price higher for a longer period.

Bitcoin Bull Market Boost

To provide further context as to why Edwards is suggesting this possibility, on April 4th, Ethena Labs announced its intention to engage in a cash-and-carry trade involving Bitcoin. 

According to the protocol’s announcement, Ethena Labs can manage risk and provide a more stable backing for its product by buying and shorting Bitcoin. 

One of the key factors Edwards highlights is Ethena’s ability to constrain over-leverage in Bitcoin derivatives markets. By doing so, Ethena aims to prevent excessive risk-taking and potential market instability. 

Additionally, Ethena’s taking spot supply off the market can reduce selling pressure, thus supporting Bitcoin’s price and prolonging the bull market.

The protocol also noted that Bitcoin derivative markets offer superior scalability and liquidity compared to Ethereum (ETH). This characteristic reportedly makes Bitcoin a suitable asset for delta hedging, a risk management strategy employed by Ethena. 

With $25 billion of Bitcoin open interest available for Ethena to delta hedge, the capacity for its synthetic dollar product, USDe, to scale has increased significantly. Ethena Labs noted in their announcement the following:

In just 1 year, BTC open interest on major exchanges (exc. CME) has grown from $10bn to $25bn, while ETH OI has grown from $5 to $10bn BTC derivative markets are growing at a faster pace than ETH and offer better scalability and liquidity for delta hedging

Weighing The Risks

While Edwards’ statement is optimistic about Ethena’s impact on Bitcoin’s bull market, one user raised concerns about potential downsides. Edwards acknowledges that execution risks, such as custody failure or delta neutrality failure, could have adverse effects. 

Edwards identifies custody risk as the most significant risk in this context. However, he highlights that any negative impacts will likely be short-lived, and market forces will ultimately dictate Ethena’s net annual percentage yield (APY).

In short, by limiting over-leveraging in future markets and reducing spot supply, Ethena could significantly support the price of BTC and extend the current bull run.

Bitcoin

Currently, BTC’s price has experienced a significant decline, plummeting to the $68,800 level. This marks a 4.3% decrease compared to Monday’s price.

In parallel, Ethena’s native token, ENA, has also followed the overall downtrend of the market, reflecting BTC’s price movement with a 4% decrease. Presently, ENA is trading at $1.22.

Featured image from Shutterstock, chart from TradingView.com 

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Paradigm Drives $225M Funding Round For Monad Labs, Blockchain Rival To Ethereum, Solana

Venture Capital (VC) firm Paradigm is leading a substantial $225 million funding round for a new Layer 1 (L1) network, that aims to compete with the Ethereum (ETH) blockchain. Other notable participants include VC firms Electric Capital and Greenoaks.

According to a recent Fortune Magazine report, Monad Labs, the company behind the blockchain project, aims to compete with established players such as Solana (SOL) and Ethereum and the Layer 1 blockchain protocol Sui (SUI). 

Monad’s Rebuilt Ethereum Blockchain 

Per the report, Monad’s initiative is to rebuild the Ethereum blockchain from the ground up, while retaining the ability to execute smart contracts. The project aims to achieve faster transaction speeds, handle higher volumes, and offer lower costs compared to existing networks. 

Notably, Monad ensures compatibility with Ethereum’s programming infrastructure, known as the Ethereum Virtual Machine (EVM). This compatibility allows developers to port applications built for Ethereum, ensuring a fluid transition to the new blockchain.

Keone Hon, the founder of Monad, stated in an exclusive interview with Fortune that the company has dedicated approximately two years to developing its blockchain solution. 

Hon noted that Monad Labs stands out by fully supporting the EVM bytecode standard. Developers use this standard to create decentralized applications (dApps) on platforms such as Ethereum, Polygon, Avalanche, Binance Smart Chain, and Optimism. 

According to Avichal Garg, managing partner of Electric Capital, nearly 90% of developers working across various crypto ecosystems focus exclusively on EVM chains. 

This statistic, highlighted in a recent report by Electric Capital, demonstrates the significant appeal of EVM compatibility. Although Monad does not undergo a complete redesign of its programming language like some other blockchains, it still benefits from the widespread usage and familiarity of the EVM.

Blockchain-Powered Exchanges? 

According to the report, Monad plans to launch its mainnet by the end of the year and expects to launch a testnet in the coming months. The company, which currently employs around 30 people, is also looking to launch a native token, although details of its launch alongside the mainnet have not been disclosed.

While Keone Hon emphasized the pursuit of mainstream adoption, he pointed out that Monad’s initial use case is likely to be “high-frequency” trading activity, drawing on his own experience at Jump Trading, a data and research-driven trading firm. 

Hon emphasized the need for a highly performant blockchain to enable exchanges on the scale of Nasdaq or Chicago Mercantil Exchange (CME), which process millions to billions of transactions daily.

Lastly, Hon also highlighted the potential for a blockchain with high transaction capacity and low fees to enable various applications, such as gaming. He cited examples where blockchain-based games, such as RuneScape, require frequent updates of player statistics, necessitating low-cost and fast transactions on the blockchain.

Ethereum

At the time of writing, ETH was trading at $3,497, down nearly 5% in the past 24 hours. 

Featured image from Shutterstock, chart from TradingView.com

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Don’t Miss The Boat! Ethereum Whales Signal Bullish Run With $40 Million Bet

Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is experiencing a surge in optimism in the cryptocurrency market. The emergence of two new whales, according to crypto tracking platform Spot On Chain, further adds to the bullish sentiment surrounding Ethereum.

These whales have collectively withdrawn a substantial amount of ETH, totaling nearly 11,700 coins, worth approximately $40 million, from leading cryptocurrency exchange Binance.

Their significant purchase, made when ETH was priced around $3,450, indicates their confidence in the potential for further price appreciation.

Ethereum Trading Volume Soars

The cryptocurrency market is experiencing a surge in optimism, fueled by a strong performance from Ethereum (ETH) and the looming Bitcoin halving event.

ETH has seen its price jump nearly 10% in the past 24 hours, reaching $3,679 as of today. This impressive gain is accompanied by a significant rise in trading volume, which has spiked by nearly 70%, surpassing $15 billion.

Whale activity, closely monitored by market analysts due to its potential to offer valuable insights into investor sentiment, plays a pivotal role in shaping the cryptocurrency landscape.

When whales engage in large-scale purchases, it often triggers a ripple effect throughout the market. This phenomenon sees smaller investors and traders being influenced to emulate similar actions, thereby amplifying the positive momentum.

However, amidst the excitement of heightened market activity, it’s essential to acknowledge the potential consequences of increased concentration of assets in the hands of a few entities. While large purchases by whales may initially boost prices, they also pose risks to market stability.

Specifically, such concentration can lead to reduced market liquidity, making the price of assets like Ethereum more susceptible to sudden and significant fluctuations in the future. Thus, while whale activity can serve as a barometer of market sentiment, it also underscores the need for cautious consideration of its broader implications on market dynamics.

Bitcoin Halving Hype Fuels Marketwide Rally

Meanwhile, Ethereum’s impressive rally is not an isolated event. The broader cryptocurrency market is experiencing a period of bullish momentum. Bitcoin, the undisputed leader, has also witnessed a significant surge, climbing above the $72,000 mark. This upward trend is largely attributed to the anticipation surrounding the upcoming Bitcoin halving, scheduled for approximately 11 days from now.

The Bitcoin halving is a pre-programmed event that occurs roughly every four years. It reduces the number of new Bitcoins awarded to miners for verifying transactions on the network.

Historically, these halving events have been followed by substantial price increases for Bitcoin, as the reduced supply often leads to increased demand and scarcity. Investors are hoping for a similar outcome this time around, contributing to the current marketwide rally.

Renewed Optimism Grips Crypto Investors

The recent surge in prices and trading volumes across the cryptocurrency market suggests renewed optimism and bullish sentiment among investors. Analysts and experts are anticipating further price gains for both Ethereum and Bitcoin in the coming days and weeks.

Featured image from Pexels, chart from TradingView

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Ethereum Price Faces Big Move – Can Bulls Send ETH To $4K?

Ethereum price is gaining pace above the $3,600 resistance zone. ETH could extend its upward move if it clears the $3,725 resistance zone.

  • Ethereum is aiming for more gains above the $3,725 and $3,740 levels.
  • The price is trading above $3,650 and the 100-hourly Simple Moving Average.
  • There is a connecting bullish trend line forming with support at $3,480 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could extend its rally if there is a close above the $3,725 resistance zone.

Ethereum Price Jumps Over 8%

Ethereum price formed a base and started a decent increase above the $3,500 resistance, like Bitcoin. ETH surpassed the $3,600 and $3,650 levels to move into a positive zone.

A new weekly high was formed at $3,726 and the price is now consolidating gains. The price is well above the 23.6% Fib retracement level of the upward move from the $3,224 swing low to the $3,726 low. It is up over 8% and there are chances of more upsides.

Ethereum is trading above $3,650 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support at $3,480 on the hourly chart of ETH/USD. It is close to the 50% Fib retracement level of the upward move from the $3,224 swing low to the $3,726 low.

Immediate resistance is near the $3,725 level. The first major resistance is near the $3,750 level. The next key resistance sits at $3,800, above which the price might test the $3,880 level, above which Ether could gain bullish momentum.

Ethereum Price

Source: ETHUSD on TradingView.com

In the stated case, the price could rise toward the $3,880 zone. If there is a move above the $3,920 resistance, Ethereum could even rise toward the $4,000 resistance.

Are Dips Limited In ETH?

If Ethereum fails to clear the $3,725 resistance, it could start a downside correction. Initial support on the downside is near the $3,620 level.

The first major support is near the $3,500 zone or the trend line. The next key support could be the $3,420 zone. A clear move below the $3,420 support might send the price toward $3,350. Any more losses might send the price toward the $3,220 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $3,500

Major Resistance Level – $3,725