Ethereum and Bitcoin prices saw strong demand earlier this year, with BTC exceeding $73,000 and ETH above $4,000 in early March. However, they haven't made a new high in about a month, and the highs are actually coming down, meaning there is a ceiling for both cryptocurrencies.
Daily Bitcoin Chart – 50 SMA Holds as Support
Bitcoin experienced a significant rally in the first two months of 2024, but has formed a resistance zone between $72,000 and $73,000, with the lows still higher and the long-term outlook It shows that buyers are in control. However, Friday was a tough day for BTC, with the price dropping nearly 7% to a low of $65,220. However, the cryptocurrency has since rebounded slightly, finding support at this month's lows. The next halving, expected around April 20th, is expected by Bitcoin bulls to act as a catalyst for price movement.
This event, which involves a reduction in the rewards given to Bitcoin miners for validating transactions, has historically been associated with increased scarcity and upward price pressure. Despite the expectations surrounding the halving, technical analysis of Bitcoin price trends suggests some concerns after this period of decline. Therefore, if buyers break above the resistance, it will rise, fall or breakout soon, but sellers need to break above the 50 SMA (yellow).
Daily Ethereum Chart – 50 SMA broke here
Ethereum There was also some demand earlier this year, with prices exceeding $4,000. However, it failed to regain that key level and the price fell below the 50 SMA on the daily chart. Despite the positive news for Ethereum this week, it saw an 11% decline today as ETYH/USD fell below $3,100.
Ethereum blockchain’s financial report for the first quarter of this year showed a notable increase in revenue metrics. Fees and sales surged 80% from the fourth quarter of 2023, indicating a significant increase in revenue. Moreover, during the same period, profitability tripled for him, indicating an improvement in the network's financial performance.
This financial momentum is broadly consistent with the significant advances observed in network and ecosystem metrics. During this period, the Ethereum blockchain processed over 100 million transactions, reflecting increased user engagement and activity. Additionally, approximately 10 million new addresses were created during the same period, suggesting increased adoption and expansion of the Ethereum ecosystem.
Ethereum ETF in Hong Kong on Monday?
Three Chinese asset management companies, namely Harvest Fund Management, Vocera Asset Management and Hashkey Capital, are the regulators for exchange-traded funds (ETFs), following the top two digital assets, Ethereum and Bitcoin. It is expected that approval will be obtained. The Ethereum ETF is expected to be approved in Hong Kong as early as Monday. Additionally, Spot Ethereum and Bitcoin ETFs may also receive approval in Hong Kong around the same time. These approvals would mark a significant milestone in the crypto market, providing investors with a more accessible and regulated channel to invest in digital assets.
