In The Middle Of The Dip
Meme coins cool off; ETH and Bitcoin keep on dipping
Cheat Sheet -
Support and resistance levels and our daily, weekly and monthly bias on BTC, GC, CL, ES, and NQ as well as our favorite altcoins
CoinDesk Turns 10: How The DAO Hack Changed Ethereum and Crypto (CoinDesk)
Heavyweight Hedge Fund Arca Joins Activist Fight Against DAO Builder Aragon (CoinDesk)
Pepe whale turns to ChatGPT-created memecoin called Turbo (The Block)
Ethereum's staking rewards rate hits post-Merge record high, fueled by memecoin frenzy (The Block)
32% of home offices invest in digital assets — Goldman Sachs (CoinTelegraph)
You can now create a shitcoin in less than 23 seconds (CoinTelegraph)
Privacy and Public Transparency: Can a DEX Provide Both? (Blockworks)
Former Coinbase Manager Sentenced to 2 Years in Prison (Blockworks)
Investors Exit Bitcoin Short Funds at Record Pace as Sentiment Improves (Decrypt)
Central Banks Don't Care 'How Much People Spend on Sandwiches', Says CBDC Developer Quant (Decrypt)
European regulators pushed to scrap smart contract laws that would kill DeFi (DLNews)
We are going to take a break today from Bitcoin charting to look at how ETH is performing relative to Bitcoin over the past week. If you are active and wanting more content, we discuss this pair frequently in our premium section. Sign up now for a free trial.
This chart has become rather interesting because of the timing of ETH’s underperformance and recent relative outperformance against Bitcoin. After only a small rally in the first weeks of the year ETH began to underperform Bitcoin, and arguably the yearly trend still continues. What’s interesting is that since May 1st with Bitcoin selling off against the USD, ETH is outperforming. Historically, ETH tends to outperform Bitcoin on the upside and underperform on the downside, but this year has been nearly the opposite.
Since mid-March, ETH has been in a widening volatility range against BTC, but recently found support near the middle of the range and is rallying. The key resistance level to watch is 0.068. If ETH can rise above this level it would be expected to see more outperformance going into the summer. Notice that the 0.068 level is defined by the 2022 summer breakout. If this level becomes resistance that would be a bearish omen and likely see a long period of sustained downside for ETH versus Bitcoin.
Because of this setup it would be prudent to sit on your hands and watch this key resistance level before entering a long or short position.
Join us in discord where we will actively be following ETH’s relative price action.
Possible Course of Action
Short if 0.068 acts as resistance
Do nothing and wait for a breakout above 0.068 before getting Long
The Bulls’ Defense:
Price bounce of mid range support
The Bears’ Prosecution:
Total crypto markets selling off, ETH usual underperforms in this scenario
A Closer Look
This section will be focused on taking a closer look on what Hal thinks is important to watch in the coming week.
This morning Hal continues to follow (PEPE) the most popular meme coin trading on Twitter.