OVERVIEW
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Hey 👋 

It’s Spiral Strategies, it finally happened the Ethereum ETF was approved!

Lets waste no time and jump right in 🦘

NEWS

Ethereum ETF approved 🥳 

Ethereum (ETH) rose from the dead like The Undertaker in SmackDown vs. Raw.

Rumors of the Ethereum ETF approval spread like wildfire on Monday, skyrocketing ETH's price to $3,694 — a massive 21% increase in just one day, marking the largest daily candle in ETH's history 🤯

Bloomberg’s ETF and crypto experts, James Seyffart and Eric Balchunas, publicly announced that they believe there is a 75% chance of the ETH ETF being approved 👇️

When the boys in suits publicly show bullishness, you can bet your ass a pump in the market will follow suit.

Pun intended 😆 

Following this rumor, the sentiment was bullish yet skeptical, until all of a sudden, James Seyffart tweeted this 👇️

And just like that, the crypto market changed forever!

Woah, woah, woah, slow down, cowboy 🏇

Don’t bet the farm just yet — there is one more step in the approval process before the Ethereum ETF is rolled out. Let me explain 👇️

ANALYSIS

What’s Next?

Ethereum just got the 19b-4 (some legal paperwork) approval, think of it like approval to wait in line to get into a club.

Ethereum still needs to get past the bouncer (S-1 documents—more legal stuff) before it can start trading.

So, it's not hitting the dance floor just yet!

Once the Ethereum ETF is finalized, it could attract millions of dollars to ETH, potentially catapulting its value to new all-time highs, just like Bitcoin when its ETF was approved.

And it's not just mass adoption that can make ETH's price soar. Let me break it down for you.

Ethereum uses a burn mechanism to deflate its total supply, unlike the dollar, which is printed daily 🤦

Essentially every time a transaction is approved on the Ethereum blockchain, some $ETH is sent to a burn wallet. So,

• Ethereum ETF approved→ will result in increased transactions on the Ethereum blockchain
  

• Increased transactions → mean more $ETH is burned
  

• More $ETH burned → decreases supply of $ETH
  

• Decreased supply of $ETH → will increase demand for $ETH

A recipe that even Gordon Ramsey would love.

TECHNICAL ANALYSIS

Time to Invest in ETH?

Well, the best time to invest would have been Sunday. But who could've seen this coming? 🤷

Lets take a look at where we can potentially capitalize on this massive shift.

Ethereum Daily Price Action

Taking a look at the chart above we can see that ETH has broken out of the “KEY DOWN TREND”

Uninformed investors might jump on this breakout, thinking it's the perfect opportunity. But it could be a trap, like the one below 👇️.

If the ETH bull is truly back, we want to see bullish market structure like this:

In addition to bullish market structure, we need the right location.

LOCATION, LOCATION, LOCATION!

Which would you rather, a house next to a golf course or a house next to a dumpster pit?

The golf course right? Why? Well besides the horrific stench, the golf course location is perfect to drive the value of your house higher!

Same goes for investing, you want to ensure you're investing at a level that increases your odds of a higher yield.

Looking closely at the Ethereum chart above, we see price confluence at four key locations:

• Area of interest - $2808 - $2504

• Sell Side liquidity - $2815

• Wykoff Check - $2717

• Void in Trading - $2490 - $2900

These overlapping location tools suggest that the price might potentially return to these levels.

Therefore, it's wise to have an order ready at these levels.

Considering this we are looking to add more to our ETH position at $2750, we believe this is a realistic and achievable target.

LOOKING AHEAD

Impact on the Crypto Market

The bullish sentiment around Ethereum and the Ethereum ETF will eventually trickle down into other crypto assets, most notably, Ethereum layer 2 scaling solutions!

Ethereum is a monolithic blockchain: it handles its own security, transactions, and data availability.

This "do it all" approach, however, has its limitations. High demand combined with limited blockspace leads to transaction congestion and high fees.

To tackle these issues, developers have created various scaling solutions that act as Ethereum-centric execution layers.

These solutions offer faster and cheaper transactions, addressing the inherent limitations of the monolithic blockchain. Some of these layer 2’s include:

• Arbitrum ($ARB)

• Optimism ($OP)

• Base ($BASE)

• Blast ($BLAST)

• ZkSync

With the Ethereum ETF approval, we can expect more transactions on the Ethereum blockchain. This will likely lead to increased congestion and frustration, driving people toward layer 2 solutions.

You can expect a full breakdown of the layer 2 solutions we believe will perform the best, coming soon!

FEEDBACK

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