What's up my crypto people! 🚀 Get ready because we're not here to beat around the bush, we're here to understand why ETH brushed against $4,800 and then had a "little breather" which is actually the most important move of the week. 🤯

Don't be scared by the 3% correction that Ether made right after Bitcoin hit its new all-time high. Watch out, the price went below $4,500 and this happened due to a technical thing called "bearish divergence". In English: those who were buying got a little tired and the price slowed down. It's not the end of the world, it's a sign to take a pause before continuing to rise.

And Why Should I Care About This Drop?

Here’s the juicy part: Although "spot" buyers (those who buy the coin to hold it) are taking profits and selling a bit, leveraged traders (those who trade futures and risk more) are still active like ants! 🐜 We see this because the Open Interest in futures (how much money is in those bets) remains very high.

This means that the market hasn’t given up, it’s just waiting for the perfect bait. The key zone to watch is around $4,400. Why? Because that’s where stop-loss orders (the automatic sell orders of those betting on the rise) are clustered. If the price drops a bit, it sweeps through all those orders and takes the liquidity... and boom, it can use that momentum to bounce back strong and start the party again! 🥳

In summary, two critical scenarios:

The "Liquidity Lag" of ETH: The Thesis of the Century

Here comes the part that will make you think. Global liquidity (the money in the economy, the famous M2 of the U.S.) is at record levels. BTC has skyrocketed more than 130% since 2022 because of this. But, do you know how much ETH has risen? Only 15% since then. This is the "liquidity lag" that experts talk about. ETH is supposedly lagging behind and needs to catch up. 🏃‍♂️💨

The data confirms it:

  • ETH reserves on exchanges are down: People are taking their ETH out of exchanges (where it is sold) and putting it in safe places or in staking (to earn profits). This reduces the available supply. Less supply and more demand equals rising prices! 📈

This is already the fourth time Ether touches the $4,700-$4,800 zone. If the fifth time is the charm and it manages to stay above, the rise could be epic. If not, don’t worry, it’s forming a "higher low", which is the perfect base for the next big leap.

So, don't see this drop as a disaster, see it as the turning point. It's the litmus test of whether the bulls have enough strength to send Ether to the moon.

Are you ready to see if this is the start of the great update of Ether? Stay glued to the chart, because what’s coming is good volatility. 👀$ETH $BTC