The main narrative in the crypto market will focus on ETH next.
One aspect is the approval of the ETH ETF. It can be seen from the current schedule given by the SEC that the earliest deadline for ETH ETF is May 23, while for BlackRock, the deadline for ETH ETF will not be until the third quarter. Compared with BTC, ETH is more difficult to pass based on its POS and staking model. And judging from the SEC’s recent public statements and sending Wells Notice to Uniswap, they do not want to simply approve the ETH ETF. However, we believe BlackRock’s application is still more likely to be approved.
On the other hand is the LRT track. Eigenlayer recently announced its airdrop plan for May. As we all know, after EigenLayer launched restaking, a large amount of funds entered the LRT sector to obtain potential airdrops. However, when EL is airdropped, funds may quickly take a position, forming selling pressure on ETH.
ETH performed stronger than BTC last week, but did not break above 3300. During the past week’s rally, ETH’s trading volume has been below its average. Judging from the WTA indicator, the rebound is not supported by whales. And the ME indicator, which represents a bullish trend, continues to narrow.
To sum up, we believe that ETH is still in the process of a large-scale correction. It is likely to remain fluctuation over the coming week. We retain the original resistance level 3700 and support level 2800.
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