Driven by the increase in on-chain activities and the upcoming Shanghai upgrade, Ethereum finally ushered in a breakthrough. Bitpush terminal data showed that shortly after hitting a low of $1,730 in the previous trading day, Ethereum jumped to a year-to-date high of $1,850, which was also the highest level since August last year, and then fell back to around $1,810 during the closing hours of the U.S. stock market. Ethereum's market value is currently about $221 billion, and its 24-hour trading volume is $11.8 billion, the highest in recent weeks.
Upcoming Shanghai Upgrade
Bitpush previously reported that the Shanghai hard fork was originally scheduled to start on March 14. On March 2, Ethereum developers announced that the hard fork would be postponed to April.
I don’t think the Shanghai hard fork will bring about a huge selling pressure, but Ethereum may remain volatile before the upgrade.
Ethereum is heading towards deflation, and reduced supply and increased market demand will be good for price increases. Ultra Sound Money data shows that as of March 23, ETH 7-day destruction reached 1,755. Since the London upgrade started on August 6, 2021, 1% of the total supply of Ethereum has been destroyed, which is equivalent to destroying more than 1,853 ETH in 595 days.
Arbitrum Airdrop Increases Market Volatility
The token airdrop of Arbitrum, the largest L2 network on Ethereum, has caused a sensation on social media. As more users and developers flock to the platform, demand for ARB tokens is expected to rise, which may cause short-term price fluctuations for Ethereum and ARB. Because the fee for applying for ARB airdrops on the Arbitrum network is paid in Ethereum, Ethereum gas costs rise as users rush to claim the airdrop.
Addresses holding more than 0.01 ETH have reached an eight-month high
A positive indicator for Ethereum’s performance is the increase in the number of addresses on the network. According to data from Glassnode, addresses holding more than 0.01 ETH have reached an eight-month high.
The price drop of Bitcoin and Ethereum from March 9 to 13 caused a rapid reduction in exchange reserves. These may be "smart" investors who bought low in fear, but Ethereum did not rise significantly relative to Bitcoin at the time, and withdrawal amounts did not return. When Bitcoin's rise is complete, we can expect a strong rise in Ethereum.
ZK will be the next hot narrative!
The busiest day of March has ended, and now we are looking for the next hot narrative, mainly looking at
1. The halving trend started again yesterday. The DASH halving is relatively close, so the focus should still be on the LTC halving trend (DASH is expected to be halved on June 22, and LTC is expected to be halved on August 3)
2. Zk's narrative will begin soon. On March 27, the zkevm mainnet will be launched, and bnb will integrate zk. And now zkaync is considering issuing a coin, which is a clear hint.
In addition, Arb’s popularity has passed, but its value has not. If it falls, you can continue to buy it in batches and store it until the bull market. As the leader of layer2, it will not be bad in the future.
The layout of the second layer that I have been talking about has also started. For example, celr is very strong. I hold two currencies, lrc and celr, in the second layer. Because arb has issued coins, the only thing that can be hyped later is the zk system, and zk must be the next hot spot.
Ethereum stabilizes at 1800, Bitcoin stabilizes at 28000, and continues to cover positions, but this wave of stagflation is a copycat
1. Don’t chase the market if it has already gone up, as there is a risk of a short-term pullback.
2. Plan your strategy early, don’t wait until everything is ready before you start taking action
3. Once ETH and BIN fall below the key position and cannot be recovered (effectively fall below), stop loss protection will be applied directly
4. The picture shows the rhythm of the copycat season, with Bitcoin sucking blood - Ethereum pulling the market - mainstream coins - air
