🧘‍♂️If You Own Any Ethereum…

Dear Meditators

It’s been a decent start to the week. Price recovery has been far from remarkable but we will take what we can get at this point.

The LFG continues to be vocal on Twitter about the ramifications of the de-peg and the steps they are taking in an attempt to roll out damage control.

In times like this, it becomes a matter of conviction. How committed are you to your goals of achieving financial freedom through crypto? Continue reading if you’re serious about this journey and the rewards you will reap.

Today’s Meditations: 

• Ethereum Technical Analysis
• Something Phishy
• Getting to Grips with the Terra Reserve
• Our Crypto Calendar of the Week

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⏰ Top Headlines

• Fantom Stablecoin DEI Becomes Latest to Lose Dollar Peg
• Luna Foundation Guard depleted its $3 billion reserves to try to save UST, it reveals
• The Brazilian Stock Exchange will launch Bitcoin and Ethereum futures
• Portugal considering capital gains tax for cryptocurrency

? Breaking ETH-En

ETH/USD

Macro Structure: A lot more support than bitcoin. Decent support on the weekly at the $1900, $1600 and $1400 level. This means all of these levels can be used as potential bounce plays and once lost, increase the bearish momentum.

Key Support: $1.9k.

Key Resistance: $2.5k.

Looking Forward: Firmly bearish for as long as the price remains below the $2.5k level. A weekly close below the 100 Week Moving Average would also be bearish. Favouring shorts over longs here. 8 straight weeks of red in a row. Best not to be a hero trying to catch a knife here. Keep a close eye on that 100 Week Moving Average.

? Terra-ble Reserves

More than 1 week ago, the Luna fiasco started. If something such as this ever happened, they were supposed to be able to go into the reserves and consequently give more stability to their stablecoin if it fell off the dollar peg. Let’s take a closer look at the $3.5 billion Terra reserve and what Elliptic (blockchain analytics firm) has uncovered.

• $3.5 billion worth of Bitcoin was being held, partly, to defend and support TerraUSD (UST) stablecoin.
• On May 9, the Luna Foundation Guard (LFG) announced that it would loan $750 million worth of BTC to OTC trading firms to help protect the UST peg.
• At this same time, around $750 million worth of BTC was sent to a new address. Later that evening, another $930 million was sent to the same address.
• On May 13, Terra Labs CEO Do Kwon said “We are currently working on documenting the use of the LFG BTC reserves during the de-pegging event. Please be patient with us as our teams are juggling multiple tasks at the same time.”
• Do Kwon claims that neither he nor any of his team profited from this unfortunate event.
• While this money was all sent to the same address, it is not all that clear what happened with the money. The reserve was supposed to be used to purchase UST and push the price back up to $1.

The tricky thing, according to some analysts, is the difficulty in identifying whether the reserve was sold to support UST price, or if they wanted to “cash out.”

? Something Phishy

We could all use some good news in crypto lately, but it did not come on this year’s Friday the 13th. A number of websites frequented by crypto users were targeted in a phishing attack Friday. At the top of the list were CoinGecko and Etherscan.

• Etherscan is the most used block explorer while CoinGecko is one of the most popular price and activity aggregators in the space. Block explorers function as online blockchain browsers which are used to examine transaction details happening on a network.
• The attacker targeted traffic to the popular sites by displaying a malicious pop-up enticing users into connecting their Meta-Mask wallets.
• This phishing attack looks to have come from a domain impersonating association with the Bored Ape Yacht Club, and was taken down shortly after the threat was identified.

Vigilance never goes out of style. Phishing attacks are some of the most easily preventable.

1. Never click links received in unknown emails. Even if the sender is familiar, if something seems off, it probably is. Verify before opening.
2. When visiting sites, pay extra attention to anything unexpected. If you’re directed to a page you’ve never seen, retrace your steps. Don’t click on any unfamiliar pop-up advertisements.

Bad actors count on complacency. The only way to avoid an eventual catastrophe is to take ownership of your security.

Monday, 16 May

• ?️ Fabwelt AMA

  Fabwelt, a project aimed at creating a gaming metaverse platform that brings blockchain technology into the core of high quality games of all types and genres, will host their weekly AMA on Telegram at 14:00 UTC.

Tuesday, 17 May

• ‼️ BAT Community Call

  Hosted on Brave Talk, the team will gather to discuss topics surrounding the Brave browser and the Basic Attention Token at 2 PM Pacific.

Thursday, 19 May

• ? EOS Hard Fork

  The EOS network has scheduled an activation date for hark forks, marking the symbolic completion of EOS independence from block.one.

• ? Crypto Marketing Meetup

  Experts from SLON Media, Currency.com & Capital.com, ANKR, Polkadex and CreatorVerse will share insights and cases on how to successfully grow your Crypto, DAO, Web3 and NFT projects.

1. Watch our How to Get Rich Trading Crypto Course if you struggled with today’s technical section.
2. Read the following Technical Analysis guides for more insight:
   1. Moving Averages 
   2. Fibonacci Retracement  
   3. Volume and Open Interest  

We’re Watching

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??‍♂️✍️ Stories in this newsletter were written by Kyle F., Misael Calleja, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Ellen B.

Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.

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