🧘♂️What’s Happening to Ethereum?!
Market Meditations | April 29, 2022
Mixed price action today reflects mixed sentiment. Earning reports have been more positive (Meta and Apple in particular) but the risk-off factors remain prominent: interest rate hikes, geopolitical tension and renewed coronavirus fears.
- Ethereum Technical Analysis
- Cosmos Gets Compatible
- Global Warming Up to Bitcoin
⏰ Top Headlines
- ApeCoin Futures See $36M in Liquidations After Volatile Trading
- Yuga Labs’ Otherside scraps Dutch-style auction for NFT sale
- Binance closes accounts of individuals with links to Russian government
- US crypto adoption remains high despite global inflation fears
? It’s Not Been Eth-Sy
Macro Structure: Lost the $3k key psychological support. Zooming out to the weekly, price is likely to test the $2.4k level.
Key Resistance: $3.6k
Looking Forward: Medium-term trend remains downwards.
⚛️ Cosmos Gets Compatible
Ethereum Virtual Machine compatibility has become the most widely adopted standard for smart contracts and was clearly a recent trend in the crypto space, bringing wealth to those who identified the trend early.
- EVM compatibility allows smart contracts and assets on Ethereum to be used in another blockchain. EVMOS is the latest blockchain to claim EVM compatibility and although it was originally conceived in 2016, it just launched on the Cosmos network.
- EVMOS will be a layer 1 blockchain on the interoperability protocol.
- Throughout 2021 several other blockchains attempted to pull from Ethereum smart contracts and assets, including: Avalanche, Polygon, BNB Chain, Fantom and Moonbeam.
- Transferring assets between Ethereum and EVMOS will require a bridge, for which EVMOS developers have partnered with Connext, Celer, and Nomad.
- Launching on Cosmos will allow EVMOS to directly communicate with Terra, another blockchain in the Cosmos network which currently has $29 billion in crypto assets.
- Terra (home to UST) recently claimed the title of 3rd largest stablecoin and has already allocated $8 million of UST to EVMOS to boost liquidity on the newly launched layer 1.
Diffusion Finance, a fork of Uniswap, will be the DEX for EVMOS. Other apps launching soon include EvmoSwap, QuantumSwap, Nomad, and Coslend.
? Global Warming Up to Bitcoin
Even as the news of the Central African Republic’s adoption of BTC is still as hot as the savannah, the topic of regulation continues to spread worldwide. Not to be outdone, things are heating up in the jungles of Latin America where both Panama and Brazil are making moves toward digital integration.
- The Panamanian Legislative Assembly approved a bill yesterday to regulate the use of cryptocurrencies while Brazil’s Senate approved the country’s first bill aimed at regulation earlier this week.
- After exiting the Assembly’s Economic Affairs Committee last week, the approval of the bill brings it one step closer to Panamanian President Laurentino Cortizo’s veto or signature to have finality in the matter.
- If signed, Panama’s bill will enable citizens to pay taxes with crypto and pave the way for use of digital assets in both private and public venues.
- Gabriel Silva, the bill’s sponsor, explained that crypto assets are treated as foreign-source income, equating to no capital gains taxes and said the proposed legislation is broader in scope than measures passed by El Salvador.
While it’s easy to get emotional when prices are volatile – don’t sweat it. ? The crypto space is a hotbox of uncharted territory. Take a step back into the shade and look at the bigger picture.
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