Spot Ethereum ETF Decision Due This Week -

On May 23rd, the SEC will reach its decision deadline for VanEck’s Spot Ethereum ETF, the first application of its kind. Analysts at Bloomberg anticipate that the U.S. SEC is unlikely to grant approval during this review period.

The average transaction fees on Ethereum have dropped to historic lows as more users migrate to Layer 2 solutions. The gas fees now average at about 4.81 Gwei, the lowest since the network completed the merge in 2022. In the past month, Layer 2 blockchains accounted for 82% of all transactions on the Ethereum network.

Bloomberg ETF analysts revealed that over the past two weeks in May, Spot Bitcoin ETFs saw inflows of 1.3 billion USD. This influx offset the 343 million USD outflows in April, resulting in a net positive. Consequently, Spot Bitcoin ETFs now have a total of 12.3 USD billion in assets under management.

Morgan Stanley disclosed to the SEC that, as of March 31, it had invested over 270 million USD in Spot Bitcoin ETFs. This investment includes 269.9 million USD in the Grayscale Bitcoin Trust ETF (GBTC) and 2.3 million USD in the ARK 21Shares Bitcoin ETF (ARKB).

JPMorgan has raised its estimated cost of producing Bitcoin from 42,000 USD to 45,000 USD, based on current mining power and energy usage. This new estimate remains significantly lower than the current market price.

DappRadar revealed that investment in blockchain gaming reached 988 million USD in April, the highest since January 2021. Additionally, the number of unique active wallets (UAW) per day hit a record 2.9 million wallets, driven by the growing popularity of airdrop activities.

Weekly Technical Analysis: 21 – 27 May 2024

Bitcoin (BTC)

BTC has rebounded to test the 2,414,000 THB resistance level, showing positive signs of reaching new highs. In the short term, there is support at 2,240,000 THB. If this level holds, there is a chance to break through the 2,414,000 THB resistance and test the recovery target of 2,600,000 THB.

Support 2,240,000 THB Resistance 2,600,000 THB

Support 63,000 USD Resistance 70,000 USD

Ethereum (ETH)

ETH is showing signs of a stronger recovery compared to BTC. The target is to surpass the 118,000 THB resistance level and sustain upward momentum to confirm the uptrend. In case of a downward adjustment, there is support at 104,000 THB. Keep an eye on this week’s price action, as it may be influenced by the Spot Ethereum ETF decision.

Support 104,000 THB Resistance 118,000 THB

Support 2,700 USD Resistance 3,300 USD

Chainlink (LINK)

LINK has surged by 19.96% over the past week, signaling a potential return to an upward trajectory. To continue its upward momentum, it needs to surpass the resistance level at 660 THB. Short-term investors can consider selling for profit at this resistance level. On the other hand, if there’s a downward retracement without breaking below the 560 THB level, it could present a buying opportunity.

Support 560 THB Resistance 660 THB

Support 15.56 USD Resistance 18.33 USD

Fantom (FTM)

FTM has surged by 18.54% over the past week, indicating a potential upward trend. To confirm this, it needs to surpass the resistance level at 38 THB. This could be a short-term profit-taking opportunity. Meanwhile, the support level is at 27 THB. If it falls below this level, it may be prudent to sell to minimize losses, as the trend could reverse downward.

Support 27 THB Resistance 38 THB

Support 0.75 USD Resistance 1.06 USD

Trading and Investment Considerations For The Week

The announcement of a lower-than-expected Consumer Price Index (CPI) could be a significant turning point that triggers another upward movement in Bitcoin prices. After moving mostly sideways for the past two months, this development may prompt central banks like the Federal Reserve to maintain interest rates and even consider lowering them by the end of 2024. Such actions could bode well for speculative assets in the cryptocurrency market.

This week’s consideration of the Spot Ethereum ETF could lead to price volatility. However, if there’s a downturn following a decision not to approve, the downside may not be significant as the market hasn’t been optimistic about an approval.

This week’s key highlight is on May 22, when the results of the recent monetary policy meeting will be disclosed. Watch for the perspectives of each committee member on interest rate policy, as well as the geopolitical tensions in the Middle East following the death of the Iranian president, which could create market volatility.

The influx of investment in Spot Bitcoin ETFs returning to positive territory is boosting market confidence. However, sideways movements in prices will continue this month until new positive factors emerge to support an increase. There’s also a chance that the price may drop to around 56,000 USD.

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Past returns or performance of digital assets do not guarantee future returns or performance.

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