Ethereum Market Analysis: Trump's Tariffs and Whale Activity
The Ethereum
#ETH market has been experiencing significant volatility, with Trump's tariffs announcement contributing to the uncertainty. After surging 3% on the news of tariffs on AI chips, Ethereum's price dropped to $3,720, a "news bull one-day tour." The current critical support level is $3,700, which has become a "battlefield beacon."
Key Points:
- Trump's Tariffs Impact: The tariffs have led to increased market volatility, with the global crypto market cap dropping by 0.9% and Ethereum dipping by 1.5% to $1,820 in previous instances.
- Whale Activity: Whales are buying the dip, with a whale wallet tagged "
#ETH 7 Siblings" purchasing 50,429 ETH for $126 million after the market crash.
- Technical Analysis: The MACD green bars shrinking to needles and the RSI dropping to 37 indicate a potential "bottom fishing zone," suggesting sharp drops can be bought in batches.
- Altcoin Impact: When Ethereum repeatedly tests $3,700, most altcoins tend to plummet like a waterfall, making them "lambs to be slaughtered."
Market Outlook:
- Short-term Support: The $3,700 mark is crucial, and holding above it could lead to a challenge of the $3,800 level.
- Breakdown Risk: A breakdown below $3,700 may trigger liquidation of $210 million in on-chain collateral.
- Upcoming Events: Ethereum ETF options expiration on August 1 and Federal Reserve Chairman Powell's speech on August 6 could impact the market.
Investment Strategy:
- Buy the Dip:
#LDO Consider buying in batches during sharp drops, staying away from high-leverage contracts.
- Monitor Whale Activity: Keep an eye on whale purchases and market sentiment.
- Diversification
#LDO Be cautious of altcoins' vulnerability during Ethereum's price fluctuations.
By staying informed and adapting to market changes, investors can navigate the current volatility and make informed decisions.