2100NEWS WEEKLY CRYPTO REPORT May-23

The NWST1100 index has increased by 2.87% from the previous week; ether.fi (ETHFI), a large-cap Ethereum-based token, has made the most significant leap in rank within the NWSL100 crypto index biweekly.

*Below, we present a standardized weekly report and next week’s outlook, prepared based on the Theory Swingtum of intelligent finance. We gauge the crypto market’s breadth and direction by showing charts 2100NEWS Digital Assets Total Index (NWST1100), which measures 1100 (by market capitalization) significant crypto assets’ performance. The information-laden chart is complex to read initially, but the chart shows essential price information, crucial decisive price levels, momentum, trading volumes, and crypto market breadth. Monitoring Market Sentiment and Breadth is necessary to detect early signs of trend reversals or continued strength.

Our detailed analysis of the NWST1100 chart and related market indicators reveals essential insights into the current market conditions:

The NWST1100 index advanced by +2.87% last week, continuing its upward streak to six consecutive weeks. However, the rally showed signs of fatigue as bullish momentum moderated. The index reached a high of 7,504 points early in the week but could not hold above the red resistance zone and retreated toward the end of the week.

1. Market sentiment: The Price Oscillator (PPO) lines continued to slope downward, and the PPO histogram turned negative, both signaling that momentum is weakening. Meanwhile, the RSI (Relative Strength Index) has declined from the overbought zone and closed the week at 63.17, reinforcing the case for a cooling market.
2. We are now focusing on the breadth indicators at the bottom of the NWST1100 chart. The Advance-Decline Line (ADVL), which measures the number of advancing versus declining assets, has rolled over, signaling narrowing market participation. The McClellan Summation Index, a long-term version of the McClellan Oscillator that measures market breadth, also declined.

📉 Summary

The market paused after six intense weeks. Momentum indicators and breadth metrics now suggest a consolidation phase or shallow retracement. Momentum indicators and breadth metrics have softened, suggesting that upside potential is limited in the near term. Price action remains above key support levels, but the rally has failed to confirm a breakout beyond resistance.

According to the chart on the right, all A50R indicators across all major segments (NWST1100, NWSET100, NWSL100, NWSCo100) have deteriorated compared to the prior week. These indicators have exited overbought territory, reflecting a loss of internal strength and a more neutral-to-cautious outlook.. This breadth indicator measures the percentage of digital assets trading above a 50-day moving average. 

*This breadth indicator is essential in measuring the internal strength or weakness of the underlying index. Looking at the chart on the right side, we can see the A50R lines for four different categories of digital assets:

1. The top box shows the A50R lines for 100 Large-cap members of NWSL100.
2. The middle box displays the A50R lines for 1100 members of NWST1100, which is the Total Index measuring the performance of significant crypto assets based on market capitalization.
3. The third box shows the A50R lines for 100 Ethereum Tokens members of NWSET100.
4. The bottom box represents the A50R lines for 100 Coins members of NWSCo100.

Outlook for the Week Ahead

This report aims to provide insights into the cryptocurrency market’s near-term outlook. While complete predictability remains challenging, the market waves show some degree of predictability with discernible patterns in market behavior. By examining momentum indicators, several signals emerge that offer insights into the potential direction of the market in the short term.

1. The RSI (Relative Strength Index), currently at 63.17, may continue drifting lower, suggesting a pullback.
2. The PPO lines indicate that the market’s momentum may continue downward. The PPO histogram has moved into the lower half of its wave, with negative values, indicating weakening momentum. This implies the current correction may have more room to develop before stabilization.
3. The Breadth indicators at the bottom of the first chart (NWST1100), which reflect the participation of assets in the market movement, may continue deteriorating,

   reinforcing the narrative of narrowing participation and growing vulnerability across segments.

📌 Target and Scenario Considerations:

A healthy retracement toward the 10-day EMA near 7,000 aligns with the 0.78 Fibonacci level and may offer support. If this level holds, the market may rebound sharply and enter a sideways range-trending phase. Failure at this level could extend the correction toward the 25-day EMA and the Pivot R1 level (~6,800).

📍 Key Levels to Watch:

• Support: 7,000 (10-day EMA / 0.78 Fib)

• Deeper support: 6,800 (25-day EMA)

In conclusion,

The crypto market showed clear signs of exhaustion after a powerful multi-week rally. Following the recent swift move above the 7,400 target, it appears the peak phase of this rally has concluded. As a result, short-term caution is warranted. This period may offer an opportunity for healthy consolidation or, if key supports fail, a deeper corrective move toward the lower technical levels.

Investors and traders often rely on historical performance data to make informed decisions about their cryptocurrency holdings. After analyzing the data in the table, it can be seen that the crypto market encountered resistance around 7400 points marked with a red-green line after a six-week climb, and the overall index has increased by 2.87% over the last week. The accompanying chart highlights the performance of key cryptocurrencies, including Bitcoin and Ether, alongside the 2100NEWS Indices, which track Ethereum-based tokens (NWSET100), large caps (NWSL100), and coins (NWSCo100). Ether held up better than other segments and has significantly outperformed other segments, leaping 43.33% in the previous thirty days.

While the broader market has consolidated, different segments and individual cryptocurrencies exhibit different performance dynamics.

Performance Trends by Market Segment:

✔ Ether led the market with exceptional gains,  

✔ NWSET100 (Ethereum-based tokens), NWS30,  and NWSL100 (Large Caps) improved,  showing relative strength.
✔  NWSBE weakened, indicating declining strength.

✔  Bitcoin, NWS30 and NWSCo100 (Coins) lagged.

Investors and traders might use this information to adjust their portfolios, possibly shifting focus toward assets with stronger relative momentum while being cautious about those in the Weakening quadrant.

*RRG® charts show the relative strength and momentum of groups of digital assets. Those with strong relative strength and momentum appear in the green Leading quadrant. As relative momentum fades, they typically move into the yellow Weakening quadrant. If relative strength then fades, they move into the red Lagging quadrant. Finally, when momentum picks up again, they shift into the blue Improving quadrant.

Crypto (Digital Assets) compared with global equity

This report offers a comprehensive analysis comparing the performance of digital assets, as signified by the NWST1100 index, to shares on global capital markets, embodied by the Dow Jones Global W1Dow index. We draw insights into historical achievements and potential future trends by examining their performances over various time frames.

Let’s break down the key observations and implications:

• Historical Performance Comparison:
  • 42 Months Ago: Digital assets vastly outperformed global equities in global capital markets, reaching a record high in the comparative quotient between the NWST1100 and W1Dow index.
  • From twelve months ago to the Present, digital assets have outperformed equities by 9.8%, reflecting a significant rebound in the crypto sector.
• Mean Reversion Opportunity:
  • The average quotient price, represented by a blue dashed curve, has been 10.18 over the past 143 working days, while the current spot price is 11.19. This is higher than the long-term mean of 7.95, which has increased since October.
  • The mean reversion theory suggests that asset prices, over time, tend to revert to their historical average returns. The current average quotient price above the long-run mean could imply that digital assets are currently highly valued compared to historical trends.
• Returns Comparison (12-month Accumulation Method) & Strategic Investment Timing:
  • The chart also presents the returns achieved by the simplified index-based accumulation approach—buying one index point per day over 12 months—to simulate a mechanical exposure build-up. While this method is not equivalent to classical dollar-cost averaging (which involves investing a fixed amount of capital daily), it offers a consistent benchmark to compare historical costs and returns. The NWST1100 Crypto Index has risen by 19.71% from twelve months ago. With daily index investments, an investor’s stock price would have resulted in a gain of 18.6% on the current index price, despite unprofitable purchases due to high entry prices during a prolonged market uptrend when prices remained above the 143-day moving average for an extended period.
  • The DJW, representing global capital market shares, grew by 9.67% over the past twelve months. However, a daily purchase strategy would have resulted in a 4.2% gain.
• Conclusion:
  

  The recent rally underscores the importance of following market swings in crypto investing. Crypto markets demonstrated that the best opportunities often arise when sentiment is weakest, providing lower valuations, better entry points, and higher potential for future returns.

*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow. 

Indices Revision 5-23-2025

Based on the latest biweekly revision, ether.fi, EigenLayer, and Polyhedra Network improved their ranking and were added to the NWSL100 index. On the other hand, Lido DAO Token, Kava, and DeXe.network were removed from the NWSL100 index. Several new mid-cap assets, including Toshi, Animecoin, NEXPACE, etc., have been added to the NWSM200 index. Each index’s presentation provides more information about the additions and deletions for other indices in the family.

Winning member

Congratulations to ether.fi (ETHFI) on achieving a significant milestone: being recognized as the winning member of the NWSL100 crypto index, which represents the most crucial leap in rank within the index.

*We elect the member of the NWSL100 crypto index with the most significant jump in our ranking. We will examine how the market rates the project’s progress in case of price changes. It seems important to us whether the project is out of the ordinary tide of crypto project prices. Peer comparison should be efficient and effective, considering an investor’s point of view. 

ether.fi (ETHFI)  https://www.ether.fi/

ETHFI, an Ethereum-based Token, is 74th in the 2100NEWS ranking. It is an Index member: NWST1100, NWSL100, NWSET100, NWSTo100

2100NEWS DA Orderbook Quality Evaluation Grade:  Poor, 16.9 (Average for Large-caps: 17.7)

Over the last week, the average market cap was $859.7 million, and the average daily volume was $221.7 million.

Ether.Fi is a new staking protocol for Ethereum. Deposits to Ether.Fi is natively re-staked with Eigenlayer. Eigenlayer repurposes staked ETH to support external systems (e.g., rollups, oracles) with an economic security layer, which increases yield for ETH stakers in the process. Depositors receive eETH, the liquid staking token that can be used across DeFi protocols. ETHFI is the governance token of Ether.Fi.