This week has been insane. That is the only description that fits. We will continue to see this insanity as the market continues to expand as a whole, but we can also harness this for our benefit.
The first piece of business is the ETH chart. Comparing the current chart to previous charts where ETH broke into the .06’s was in May 2017. Both are similar; massive expansion in a short period with a cool down around .05’s. These are both when BTC is consolidating or breaking down, and the rapid ratio change comes from BTC loss and ETH expansion. The very top Fibonacci of 1.618 puts the ratio at .068, and I think this will be the local top before this breakdown pattern repeats. RSI is still in overbought territory. All signs point to a cooldown period.
2017 Chart
2021 Chart
The timeframe is also when taxes are due on May 15th due to an extension by the IRS. We will most likely see some profit-taking to cover these incurred taxes. Overall this is a time to take some profits before we line up at the starting gates again.
REN
Another asset I have been following and is a great asset to secure some ETH profit is REN. Republic Protocol is a bridging intermediary between all blockchains. The goal is to allow all of these blockchains without smart contract capabilities to lock their assets for the smart contract equivalent. They can then use these equivalents to participate in the many different DeFi applications that can yield passive income.
The daily chart is showing RSI at 29, which is into the oversold region. Volume is low and has been underperforming as of late. One of the best things about comparing your assets to either BTC or ETH instead of USDC is to show the true potential for price gain. When priced in USDC; Similar ratios that REN reached last September would put ren at 4.42USD.
Many things to consider after such a drastic price increase; Where do we go next. One asset at a local peak and another at a local bottom can solidify gains into another massive return.
Digital Asset Funds, Especially Ethereum, Post Largest Inflow Since February
Inflows to digital asset investment products rose to $489 million last week. That’s a roughly $487 million increase from the prior week and marks the largest inflows since February 2021.
Ether (ETH) attracted $30 million of inflows during the seven days through April 30, bringing the total assets under management to a record $13.9 billion, according to a new report by CoinShares published on Tuesday. Read more.
S&P Dow Jones Launches Bitcoin and Ethereum Indices
S&P Dow Jones Indices, a joint venture between S&P Global, the CME Group, and News Corp, has announced the launch of its first cryptocurrency indices, including Bitcoin (BTC) and Ethereum (ETH).
First announced in December 2020, the new products “aim to bring transparency to the emerging cryptocurrency market” and will measure the performance of selected digital assets “listed on recognized, open exchanges that meet minimum liquidity and market capitalization criteria.” Read more.
Uniswap v3 Comes Out Today. Here’s What to Expect
With new products and features dropping every week in the nascent decentralized finance (DeFi) arena, the top decentralized exchange in the world can’t afford to rest on its laurels.
Tomorrow, Uniswap, which upgraded to version 2 last May, aims to release version 3 of its protocol, which promises to give users more control over the liquidity they provide and feature more upside for riskier trades.
DeFi is a multi-billion dollar industry that replaces traditional financial institutions, such as banks and brokerage firms, with automated code (i.e., smart contracts) built atop a blockchain network. Via DeFi, one can get loans, earn interest on holdings, swap tokens, and place bets on tokens’ future values. Ethereum has a $391 billion market capitalization. Over $77 billion in crypto is invested in Ethereum-based DeFi protocols, demonstrating how important the sector is to the blockchain’s growth (and, likely, its price). Read more.
That’s all for the free weekly Crypto Crier. If you enjoyed this article, please like and share. If you have any questions, please leave a comment, and I can answer your questions further. As with all of my writing, this is not financial advice and is my opinion. I cannot stress enough how important it is to do your own research on all financial endeavors. I hope that these newsletters can help investors realize the current financial systems’ downfalls and usher in a more equitable system without middlemen.
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