🧘‍♂️Ethereum’s Recovery Roadmap

Dear Meditators

Crypto markets are trading better today in what seems to be market participants warming up to the FOMC meetings and a couple of data points to suggest that inflation may be getting under control. Stock markets have risen for four consecutive days and increasingly, we see stock markets correlate with cryptocurrency markets.

Let’s take a closer look through Ethereum Technical Analysis and as always, we keep a temperature check on other areas of the market!

Today’s Meditations: 

• Ethereum Technical Analysis
• Celsius Gets Sued
• Bank to Borrow From MakerDAO

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⏰ Top Headlines

• Former Japanese PM Shinzo Abe shot dead
• Bitcoin faces Mt. Gox ‘black swan’ as trustee prepares to unlock 150K BTC
• Celsius accused of fraud in lawsuit by former money manager
• Binance Secures Registration in Spain Through Its Moon Tech Subsidiary

? Barely Br-ETH-Ing

ETH/USD

Price has made it to the upper part of our range and is testing our key resistance at $1,250.

Next major resistance is at $1,700. A breakout from $1,250 would provide a long opportunity however this would be trading against the macro trend.

Range: $900 – $1,250

Next Support: $700

Next Resistance: $1,700

? Kick ‘Em While Their Down; Celsius Takes Another Hit

Jason Stone is the founder of KeyFi and a former contractor for Celsius. On Thursday, July 7, he filed a lawsuit in a New York state court, accusing Celsius of fraud and claiming that Celsius owes KeyFi hundreds of millions of dollars. According to the lawsuit:

• From August 2020-April 2021 Celsius gave KeyFi customer funds to stake and deploy into defi strategies. 
• KeyFi claims to have generated hundreds of millions of dollars in profits for the mutual benefit of both parties in the form of transaction fees, rewards for staking tokens, and other appreciating assets.
• Stone claims that Celsius had assured him that their risk management team was monitoring the activity and trading teams were “adequately hedging any potential impermanent loss from our activities in liquidity pools.”
• He alleges those claims were inaccurate and that Celsius’s portfolio had “naked exposure to the market.” He also claims that Celsius suffered severe losses during the 2021 crypto bull run because they failed to hedge their investments. That is when they began offering higher interest rates to lure in new depositors to solve their liquidity crisis, becoming a Ponzi scheme.

Not only did he file the lawsuit, but he took to his Twitter account to shed light on what he calls the failures and fraud of Celsius. The Block reached out to Celsius for comment but did not have a response by the time they published the article.

? A Loan to DAI For

The student may have become the master, and we’re not talking about Cobra Kai season 4. MakerDAO has approved a vote to form a stablecoin loan vault worth $100 million dollars… for a bank.

• The vote by Maker’s decentralized autonomous organization saw an overwhelming level of support in favor of the measure, coming in with over 87% of participants voting ‘Yes’.
• The United States-based Huntingdon Valley Bank (HVB) was approved to open a stablecoin vault which will allow MakerDAO stablecoin DAI to be borrowed only after HVB deposits off-chain assets as collateral.
• Upon launch, up to $100 million will be available to HVB with plans for the cap to rise to $1 billion throughout the next 12 months.
• MakerDAO’s spokesperson for real-world assets, Hugh Ragsdale, described the move as “an out-of-the-box, diversified and wholesale solution for generating Real World Asset (crypto-uncorrelated) revenues.”

Of course, some members of MakerDAO were not thrilled about the marriage of the decentralized finance mainstay to a traditional bank, but crypto users aren’t the only ones who need to consider diversification. It shouldn’t come as a surprise since MakerDAO also recently voted to invest $500 million into US Treasury bills as part of their diversification initiative.

? Watch

• Watch our How to Get Rich Trading Crypto Course if you struggled with today’s technical section.

? Read

• Read the following Technical Analysis guides for more insight:

1. Moving Averages 
2. Fibonacci Retracement  
3. Volume and Open Interest  

Twitter

• @AaveAave has proposed the creation of a decentralized algorithmic stablecoin, GHO, as it looks to enhance the features of its lending platform. – CoinDesk
• Solana Labs is the latest crypto company to get slapped with a class action. This one claims that SOL is a security, Solana is centralized, and that multiple outages have caused investors to lose money. – Cointelegraph
• To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve have purchased another $10,000,000 #USDD and #TRX as reserve. – TRON DAO Reserve

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??‍♂️✍️ Stories in this newsletter were written by D. Beverly, Kyle F., Max P., Nick T., 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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