Ethereum skyrocketed 22% in the last two days, directly jumping to $2200, which has indeed left many people in shock.
Let's speak plainly and break it down: this wave of market movement is primarily driven by three major factors, but there are also several significant pitfalls; ordinary people must not rush in blindly!
Can this surge be sustained? Beware of three major traps
There are tricks behind the upgrade
After the staking cap was raised, giants like Lido and Coinbase control 36% of the staking volume, increasingly resembling an 'Ethereum State-owned Assets Supervision and Administration Commission'. If they collectively withdraw their investments one day, it could crash the market.
After the upgrade, there hasn't been a notable increase in the number of users; Base chain's monthly active users are only 10 million, which is just one-eighth of Solana, raising concerns about the ecosystem's profitability.
The surge may be a trap
On-chain monitoring has detected that a whale placed a sell order for 120,000 ETH at $2200-2300, amounting to approximately $260 million, which is clearly a pre-set exit point by the operators.
Analysts mindlessly shout '5000 dollars by the end of the year', but historical data shows that after an average increase of 27% in May, there is often a sharp decline; in May 2019, the price halved right after the surge.
Retail investors become the bag holders
Currently, the market sentiment index is at 70, which is still far from being crazy, indicating that most people are still observing. When the operators push the price up, they are just trying to lure you in.
Meme coins have surged 30% (like PENGU), but these types of coins rely solely on hype; once ETH corrects, they could start falling from 50%.
