Ethereum Fundamentals Remain Strong Following Dencun Upgrade -

VanEck Hints Towards Ethereum ETF

VanEck’s investment manager suggests that a Spot Ethereum ETF could potentially be larger than a Spot Bitcoin ETF due to Ethereum’s mechanism for generating returns through staking, which can yield approximately 3% annually. However, according to Bloomberg’s analysis, the likelihood of approval for an Ethereum ETF is only around 30%.

Ethereum Fees Drop Following Dencun Upgrade

Following the Dencun upgrade of the Ethereum network on March 13th, transaction fees, or gas fees, on Layer 2 solutions of Ethereum have significantly decreased. Starknet, in particular, saw up to a 99% reduction in fees, while Optimism and Arbitrum also experienced substantial decreases in transaction costs.

ETH Supply Plummets as On-Chain Activity Increases

The supply of Ethereum has decreased to its lowest level since August 2022. In the past 30 days, supply has decreased at a rate of 0.872% per year. This reduction in supply is attributed to the increased transaction volume on the chain, leading to a higher rate of Ethereum being burned.

JPMorgan Bullish on Bitcoin Versus Gold

JPMorgan analysts predict that Bitcoin in investment portfolios could be valued up to 3.7 times more than gold. Meanwhile, reports from JPM Securities suggest that Spot Bitcoin ETFs could potentially reach a market value of up to $220 billion within the next two to three years.

Spot BTC ETF Volume Exceeds Futures ETFs

The emergence of Spot Bitcoin ETFs with trading volumes surpassing Bitcoin Futures ETFs is now a reality, with dominance reaching up to 90%. This underscores investors’ heightened interest in investing through Spot ETFs over derivative-based investments.

Grayscale’s Bitcoin ETF trading volume has dropped by less than 20% of the total volume for the first time last week. Meanwhile, BlackRock and Fidelity’s Bitcoin ETF trading volume accounted for a combined 69%.

Metamask & Mastercard Test On-Chain Payment Card

Metamask is currently testing payment integration with Mastercard and Baanx, aiming to enable users to pay with digital currencies at all merchants displaying the Mastercard logo. This announcement emphasizes a truly decentralized Web3 payment solution.

Solana On-Chain Activity Surges Amidst Metaverse Hype

Transaction volume on the Solana chain has surged to a new record high, reaching $3.79 billion. Similarly, transaction fees have also hit a new all-time high. It is anticipated that the growing popularity of Metaverse coins will be a significant driving force behind this trend.

Weekly Technical Analysis: 19-25 Mar 2024

Bitcoin (BTC)

BTC has retraced from its recent peak, indicating a potential consolidation phase, with a possible deeper pullback to around 2,160,000 THB. Initial focus is on the first support level at 2,200,000 THB. Failure to hold may necessitate a pause in investments. If sustained and surpassing the 2,518,000 mark, a retest of the previous high around 2,640,000 THB could be on the horizon.

Support : 2,200,000 THB Resistance : 2,640,000 THB

Support : 65,000 USD Resistance : 74,000 USD

Ethereum (ETH)

ETH has adjusted downward in line with BTC and has not seen positive price impacts from recent major upgrades. However, the overall trend remains bullish. Initially, focus is on the support level at 116,000 THB. A sustained presence above it may lead to a retest of the previous resistance at 146,000 THB.

Support : 116,000 THB Resistance : 146,000 THB

Support : 3,200 USD Resistance : 4,100 USD

Radium (RAY)

RAY has surged by 100.05% in the past week, indicating a bullish reversal. However, caution is advised regarding potential price adjustments this week, following a relatively strong uptrend. A viable buying support level is around 72 THB. If unable to hold, consider delaying investment. There may be a chance to revisit the 120 THB mark once more.

Support : 72 THB Resistance : 120 THB

Support : 2 USD Resistance : 3.35 USD

Solana (SOL)

SOL has surged by 32.28% over the past week, showing a continuous upward trend. The strategy employed is to buy on dips. The initial support level is at 6,400 THB, while the first profit-taking point is at 8,400 THB.

Support : 6,400 THB Resistance : 8,400 THB

Support : 177.90 USD Resistance : 233.55 USD

Trading and Investment Considerations For The Week

Bitcoin’s price has adjusted downward after reaching a peak at $74,000. There’s a chance it might readjust even further. Historical data from Bitcoin Halvings typically shows price adjustments beforehand. Additionally, despite its bullish trend, Bitcoin has yet to undergo any significant base adjustments.

The key support level is evaluated at $50,000, which is the average cost basis of the Bitcoin ETF. This level is likely to maintain the upward trend. However, assessing the level at $60,000, which represents an 18% adjustment from the peak, could be a possible support level for a downward adjustment.

If the price of Bitcoin stabilizes, altcoins are likely to begin generating good returns again. However, it’s still a matter of group rotation, as before. We may not yet see simultaneous upward adjustments in all altcoin groups.

On Wednesday, March 20, the Federal Reserve’s monetary policy meeting outcomes will be announced. The market expects the interest rate to remain at 5.50%. However, what needs attention is the subsequent statement by the Fed Chair regarding future monetary policies.

Simultaneously, on Friday, March 22, the Chair of the Federal Reserve is scheduled to speak again on monetary policy and economic trends.

Reference:

https://www.coindesk.com/business/2024/03/14/ether-etfs-could-be-bigger-than-bitcoin-etfs-says-vaneck/?

https://cointelegraph.com/news/ethereum-l2s-fees-decline-99-post-dencun

https://www.theblock.co/post/282996/ethereum-onchain-activity-ether-supply-august-2022

https://cointelegraph.com/news/bitcoin-overtakes-gold-investor-portfolio-jpmorgan

https://www.theblock.co/post/282002/spot-bitcoin-etfs-market-share-futures-etfs

https://www.theblock.co/post/281742/blackrock-and-fidelitys-spot-bitcoin-etfs-nab-69-of-market-share-eroding-grayscales-dominance

https://www.coindesk.com/business/2024/03/11/with-mastercard-metamask-tests-first-blockchain-powered-payment-card/?utm_source=twitter&utm_medium=social&utm_campaign=coindesk_main&utm_content=editorial&utm_term=organic

https://www.theblock.co/post/282993/solana-memecoin-volume-fees-highs

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