Thesis on the Rotation to ETH
I gave you my $ETH triple point thesis earlier this week.
TLDR: $ETH will outperform in 2024
We are already seeing a frontrun rotation to $ETH, much earlier than I expected.
In fact, just after the BTC ETF approval, we are seeing $ETH reaching ATH of $2,600.
My predictions 👇
Expectation is that Ethereum ecosystem will see a huge inflow as a result of the ETH ETF coming in at Q2 2024.
Overall 2023 outlook is positive for Ethereum based on both fundamental development milestones as well as growing mainstream adoption and investment
Let's do some thinking:
2023 was a significant year for Ethereum's development due to the completed switch to PoS consensus in 2022 and the growth of Layer 2 scaling solutions.
The approval of Bitcoin spot ETFs could pave the way for a spot ETH ETF approval this year, allowing more asset managers (and normies) to invest in crypto.
For ETH price levels, $2,400 is an important level to watch. Sustained weekly closes above this would be bullish.
$3,500 served as major resistance in 2022 and remains a key psychological barrier, though hitting it too fast could signal a local top forming.
The ETHBTC ratio and Bitcoin price action will also influence Ethereum's price trend.
If you think that its all gibberish talk, then lets look at some metrics
@muxprotocol has pretty good stats which i refer to here
Here is why I think their data is says a lot about the general crypto market money flow:
7D volume at $1B with a 40% increase
Daily growth of 100 new users daily
Unique users of 28K
Huge numbers are enough to justify that it can be largely representative.
So now comes the exciting part. Just before the BTC ETF approval trading $BTC was the dominant asset being traded.
However, after the BTC ETF approval, we now see ETH being the dominant asset traded.
Of course what we are seeing are traders behavior on Mux platform and is difficult to draw a conclusion to the entire crypto market. However, this data is still very insightful.
For traders actively trading the news, they would have made juicy gains if they have traded on @muxprotocol. Nobody wants to get rekted on thier trades and regardless of any position size, ALL TRADERS get to enjoy:
0% fees
0% price impact
0% spread
Twitter:
I prefer Vertex