🧘‍♂️ALERT: What Next For Ethereum?

Market Meditations | May 10, 2022

Dear Meditators


It’s been a crazy weekend with the Terra network in particular creating a lot of noise. More about Terra in this newsletter. Alongside everything, you need to know about Ethereum from a technical perspective.

When the market conditions get tough, we are always here, standing by you. Sharing all the fundamental and technical updates to help you.

Today’s Meditations:

  • Ethereum Technical Analysis
  • Key Weekend Events: Everything that Happened with Terra
  • Blender.io Iced by the U.S.
  • Crypto Calendar of the Week

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⏰ Top Headlines

? Still Alive But I’m Barely Br-ETH-Ing



Macro Structure: As predicted, ETH has come down to $2.4k support.

Key Support: $2.4k and then $2k.

Key Resistance: $2.9k confluent with the 30 Day and 100 Day Moving Average.

Looking Forward: Further downside expected and $2.4k looking unlikely to hold. Small relief bounce not out the question. Trend continues to be strongly downwards.

? Terra Gets Grounded

As usual, when the Bitcoin price struggles, most altcoins do the same. This weekend was no exception. The Terra network caught its fair share of FUD (fear, uncertainty, doubt) the past few days as a whale’s offloading resulted in the temporary destabilization of Terra’s native stablecoin, UST.

  • Luna’s price plunged over 20% this weekend when news of a $285 million dollar sell off of the network’s stablecoin, UST, spread like wildfire across social media. The move down marked the lowest level seen in three months.
  • UST also briefly de-pegged, falling from $1.00 to $0.98, before rebounding to within a fraction of a penny yesterday.
  • Some people labeled the massive UST sell-off responsible for the fleeting de-peg as an attack. Though no technically illegal activity is suspected, collusion appears to be a popular theory amongst Terra bulls.

Do Kwon was quick to take to Twitter in defense of the Terra network, posting memes and rhetoric highlighting UST’s alacritous return toward its $1.00 peg. The suspicion of a coordinated sell-off and FUD (fear, uncertainty, doubt) activity fits the narrative of the so-called stablecoin wars currently underway.

UST has become all but synonymous with an 19-20% yield thanks to Anchor Protocol’s rewards offering, but may have also inherited a target on its back as other stablecoins begin to consider strategies to consistently offer competitive yields.

? Blender.io Iced by US

On Friday, the United States announced sanctions on Blender.io for allegedly helping North Korea launder millions in stolen Axie crypto. Let’s talk more specifically about the allegations and about what it means for the US to announce something like this.

  • The US treasury said that Blender.io was used by the Lazarus hacking group to launder $20.5 million worth of crypto. This crypto was a part of the stolen Axie crypto.
  • The treasury says that Lazarus is sponsored by the North Korean government. These hackers “generate revenue for its unlawful weapons of mass destruction (WMD) and ballistic missile programs.
  • This is the first time the US sanctions a virtual currency mixer. To be clear, the reason is that it is an organization that deals with North Korea.
  • What the sanctions will do are essentially cut the bitcoin mixer off from the US financial system.
  • Now that the mixer is sanctioned, it will not be able to access which were stored in the US. It also can no longer do transactions with American companies or citizens.

Questions are arising about whether or not the US government can do this. If we remember from the Axie hack, governments can also sanction wallets affiliated with hacking groups. While mixers may have a bad reputation, we must also remember the positive anonymity that they bring to individuals who value privacy.

Monday, 9 May

  • Victory Day

    The Russian national holiday may take on special importance this year, as Vladimir Putin is expected to speak on the status of the Ukraine conflict. An unfavorable announcement could further affect the world economy.

  • ?Inflation Expectations

    Consumer 1 and 3-year inflation expectations will be released. Previous expectations of 6.6% and 3.7%, respectively, serve as benchmarks for past predictions.

Wednesday, 11 May

  • ?‍?Secret Network Upgrades

    “Massive” mainnet upgrades are set to land on the Secret Network. Boasting 500x+ performance improvements focused on strengthening Secret’s position as the data privacy hub of Web3.

  • ?Consumer Price Index 

    CPI, the measure of the average change in prices paid by urban consumers for a basket of goods and services, will be released by the U.S. Bureau of Labor Statistics at 8:30 AM ET.

Thursday, 12 May

  • ?Initial and Continuing Jobless Claims

    The U.S. Department of Labor will release its weekly Unemployment Insurance Report, including information on initial and ongoing jobless claims filed by unemployed individuals with state unemployment agencies.

Friday, 13 May

  • ?Avalanche House

    An inclusive event for users, builders and enthusiasts contributing to Web3 taking place in Berlin from 9 AM to 9 PM CEST.tributing to Web3 taking place in Berlin from 9 AM to 9 PM CEST.

  1. Watch our How to Get Rich Trading Crypto Course if you struggled with today’s technical section.
  2. Read the following Technical Analysis guides for more insight:
    1. Moving Averages 
    2. Fibonacci Retracement  
    3. Volume and Open Interest 

Crazy about tokenomics? Or just wanting to learn more. Tomorrow’s Big Idea is for you. We will be sharing Part 2 of our tokenomics guide. We will cover:

  • Vesting
  • Distributions
  • Community Assessment

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??‍♂️✍️ Stories in this newsletter were written by Kyle F., Misael Calleja, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Ellen B.

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