ETH to 20k before the EOY

Market Report #229

Hi everyone, welcome back to another newsletter and firstly I just want to apologies for the huge break between the last newsletter release and this one, things have just been super busy in real life and it has been really hard to find the time to sit down and write, as well as that the market conditions have been pretty awful, that is up until about 10 days ago, pretty much a stagnant entry into summer that bored everyone.

I really do appreciate everyone and anyone who reads these newsletters, since starting to write them all those years ago, and even though the last few months have been slow in terms of content and the market generally, it does seem as though we are not going into the next phase of this cycle, which we will discuss some thoughts below.

For the first time since the middle of March, the market has now shaken off this downside slide that we caught ourselves in, looking back now and seeing all the hype and euphoria we saw at the start of the year, and at that point I was a bit uncertain and worried that we was progressing a little bit too fast for the beginning of the cycle and I thought that if we continued on the same trajectory we would top out too soon.

This was one of the reasons that in the 2nd last newsletter, i mentioned I was scaling out of a few altcoins such as RON for example with the expectations that after so much upside we had been seeing, it was better to position ourselves for potentially some type of correction, this of course came 2/3 weeks after and since that then market has been pretty dead, in terms of engagement, community and price, majority of newly launched coins got hit hard which sucks but now things are ticking up.

The price of ETH has exploded around 2 weeks ago, wiping out two months of downside in the matter of 2 days, which just goes to show the strength of the buyers market when things are heading in the right direction or we get bullish news. The strength of this market is still here and we are seeing signs that this market is still nowhere near a top and this correction we saw over the past 2 months has only strengthened that thesis, whales are now accumulating at the fastest rate in bitcoin history and we are seeing huge influx of trading from spot ETF’s for BTC, it seems we are the cusp of a great transition towards mass adoption and a last ‘super’ cycle.

ETH has been already been slept on pretty heavily so far this cycle, we have seen SOL lead the march in terms of generally chain activity and explosive growth, this likely due to now a much wider understanding of how chains work and the scalability and ease of use that solana is currently offering for things such as memecoins and quick launches which seems to have taken this cycle by storm. That said, i believe things are likely going to shift back to ETH as this cycle continues and we see a rotation back.

Look at this chart from ETH, we can see that since the end of March price action has been heading lower and lower forming lower highs and grinding down into a pretty critical support region we have on the higher timeframes, this being around 2.8/3k, as mentioned above this downside was obliterated half way through this month with a 48 hours that took price straight back to the highs of the year, wiping out any bear sentiment and putting a complete halt on any ideas of selling in the near future, likely this flush going into summer, has come to and price will now contiue trending higher.

I think that ETH is going to continue climbing from here, and as mentioned multiple times in this newsletter since the start of the year I think even though we had a good end to 2023 and the first quarter of 2024 was super explosive, after Q2 reset we will likely see a strong second half of this year as we move into US elections and volume and volatility pick up after the summer period is over. I think crypto gets interesting during these summer months though, expect traders to start getting back into new and interesting projects, expecting AI to be the leading sector for gains (apart from memecoins) as we continue throughout the remainder of the year, lots of the altcoins I have been buying on this dip focus on that sector pretty heavily, DEAI, GLM, AIT, TAI, AIOZ just to name a few.

My targets for the remainder of 2024 and the first quarter of 2025 are pretty high for ETH and AI plays, I think funds flow back into ETH and we see a season of major gains, you have to think that only 2 weeks ago news that an ETF spot listing from ETH went pretty much from 10-100% overnight after the approval earlier in the month, we are on the cusp of seeing major money flowing into spot ETH holdings.

We are about to see major ETF adoption for spot ETH, I think ETH has a much more interesting value proposition compared to BTC for the majority of investors as they see it as the “internet of things” in this new internet shift and web3. The demand for ETH has surged again as it does most cycles, but this time with a much more scarce supply compared to last cycle and not with the additional buying pressure from a spot ETF, this is going to cause a huge supply shock and I think this combination can take ETH price way higher than the majority of us are expecting. Of course we also have to factor in the amount of upgrades that are taking place on-chain, while solana might be the current best place for the majority of users who are looking for daily transactions the amount of institutional interest and building on ethereum is vastly superior and likely with time passing and the decan upgrade and scalability improving to ETH we can only expect ETH to remain the single best chain and only improve as time goes on.

Also for those who are wondering I am currently spending my time trading and buying on WOO, I had a lot of problems recently with both the security factor and risk factor of KYC on majority of centralized exchanges. WOO currently has probably one of the best products for high-performance trading in the space right now.

A combination of deep liquidity books and powerful trade tools makes it perfect for most traders who are looking for an alternative solution.

This I have said previously, but I think this is going to be the last major cycle for price action across the board, this type of adoption is what we once only dreamed of when we all started investing in the space, to have spot ETF’s for major crypto, getting BTC added to pension investments and countries adopting the technology for major use within the monetary system. This is likely going to be some type of super cycle where the cycle could potentially go much higher than we expect and last longer with the last big push for huge gains, I think BTC gets to 1m a coin eventually, but if we get to 200k this cycle then profits and potential returns are going to likely stagnate and become more predictable. We are also likely going to see a mast cleansing of altcoins, memecoins and projects, not just in terms of price as we see at the end of every cycle but on a deeper regulation level where stuff is either just complete banned, blocked or restricted to the point of no investment access.

I think its super important to take the time this summer and for the remainder of the year to really focus on crypto, carve out a solid plan, does not need to be to difficult but I think it is rather important to just know that crypto could potentially really peak some point in the next 3/5 years and if you are not making the most of this opportunity that has already been presenting itself then you might kick yourself down the road, I think for me now, im enjoying summer, I have some really exciting and important IRL stuff this year but just consistently buying ETH and AI plays on dips and then enjoying time away from the screen, not focusing on low timeframe movements will always bring the best results.

Thank you to everyone who reads these newsletter and I will be writing another newsletter next week that will cover the market and specific altcoin charts, so if you have any recommendations for charts you want, then leave a comment below. I just wanted to get this newsletter out to share my general thoughts on the market right now and just kick things back off as we head into summer and volume ticks upwards.