Market Overview and Bitcoin Price Analysis Short Term (5/1)
BTC Technical Analysis
In the H1 frame, the price returned to the Long entry yesterday at 16770 and reacted well in this zone. Today's strategy will continue to Long this area. It is expected that the price will continue to rise to the 17000 zone. However, the long-term short strategy will start from the 17300 - 17500 zone.
📈Long
Entry: 16770
Stoploss: 16550
Target: 17050 - 17320
📉Short
Entry: 17300 - 17500
Stoploss: 17800
Target: 16000
Market Overview
The next Ethereum upgrade is likely to take place in March 2023 when the “Shanghai” upgrade will allow withdrawal of staked ETH and the Ethereum Virtual Machine (EVM) – Ethereum’s processing system that allows for contracts Smart interaction with buttons - will also be upgraded.
While Lido, the liquidity staking protocol, has now become the leading TVL (Total Locked Value) entity, Ethereum holders are still hesitant to stake their ETH without knowing when they can withdraw their ETH. , in case they want. This is what the “Shanghai” upgrade will address.
Only 14% of Ethereum is currently staked, which is extremely low compared to other leyer 1 protocols that have a stake of 58%. Therefore, it is very likely that more ETH will be staked after March and this could put upward pressure on ETH price.
Another interesting thing to note is that the ETH stake yield is +3.9% per year, even after adjusting for inflation of the expected network supply. The BNB series with an inflation adjusted yield of +7.9% and Polkadot with +7.2% are the highlights.
Lido, with its native LDO token, will likely benefit disproportionately from the ETH staking rate increase as the protocol will cut the ETH staking rewards transferred to Lido's coffers by 10%. Users do not have to stake themselves, they can “outsource” stakes to Lido.
A breakout of +27% would bring Ethereum back around 1,600 while a +39% rally could take Ethereum price to 1,750. Earlier this week, FomoTrade pointed out how the Ethereum/Bitcoin ratio appears to be starting to move higher and how long-term hedging for Ethereum by shorting Bitcoin could again be a “winning” trade in 2023. .
Also, FomoTrade's view that volatility will drop significantly this year is ongoing but at ~63% implied vol for March 31, 2023 with a strike price of 1,200, investors can still generated a return of close to +9.8 % during this period.
Therefore, there is a high probability that we could see another bull run during the “Shanghai” upgrade scheduled for March.
In the H1 frame, the price returned to the Long entry yesterday at 16770 and reacted well in this zone. Today's strategy will continue to Long this area. It is expected that the price will continue to rise to the 17000 zone. However, the long-term short strategy will start from the 17300 - 17500 zone.
📈Long
Entry: 16770
Stoploss: 16550
Target: 17050 - 17320
📉Short
Entry: 17300 - 17500
Stoploss: 17800
Target: 16000
Market Overview
The next Ethereum upgrade is likely to take place in March 2023 when the “Shanghai” upgrade will allow withdrawal of staked ETH and the Ethereum Virtual Machine (EVM) – Ethereum’s processing system that allows for contracts Smart interaction with buttons - will also be upgraded.
While Lido, the liquidity staking protocol, has now become the leading TVL (Total Locked Value) entity, Ethereum holders are still hesitant to stake their ETH without knowing when they can withdraw their ETH. , in case they want. This is what the “Shanghai” upgrade will address.
Only 14% of Ethereum is currently staked, which is extremely low compared to other leyer 1 protocols that have a stake of 58%. Therefore, it is very likely that more ETH will be staked after March and this could put upward pressure on ETH price.
Another interesting thing to note is that the ETH stake yield is +3.9% per year, even after adjusting for inflation of the expected network supply. The BNB series with an inflation adjusted yield of +7.9% and Polkadot with +7.2% are the highlights.
Lido, with its native LDO token, will likely benefit disproportionately from the ETH staking rate increase as the protocol will cut the ETH staking rewards transferred to Lido's coffers by 10%. Users do not have to stake themselves, they can “outsource” stakes to Lido.
A breakout of +27% would bring Ethereum back around 1,600 while a +39% rally could take Ethereum price to 1,750. Earlier this week, FomoTrade pointed out how the Ethereum/Bitcoin ratio appears to be starting to move higher and how long-term hedging for Ethereum by shorting Bitcoin could again be a “winning” trade in 2023. .
Also, FomoTrade's view that volatility will drop significantly this year is ongoing but at ~63% implied vol for March 31, 2023 with a strike price of 1,200, investors can still generated a return of close to +9.8 % during this period.
Therefore, there is a high probability that we could see another bull run during the “Shanghai” upgrade scheduled for March.