Ethereum surges to 2600, positive results from China-US talks

On the macro front, the UK and US trade framework has basically been established, and the China-US negotiations have concluded after two days. The Ministry of Commerce has just confirmed the success of the talks, and the subsequent tariffs are no longer at 125%, returning to normal levels. Major positive news! Bitcoin has directly climbed above the 105,000 mark, and Ethereum has broken through 2600.

On May 9th, Bitcoin ETF saw a net inflow of 321 million USD, and Ethereum saw an inflow of 17.6 million. Last week, BlackRock's IBIT ETF alone saw an inflow of 1 billion USD. I actually find it hard to understand why there is such a large inflow of off-market funds at this stage, which likely still relates to the expectations surrounding the passage of reserve bills in various states.

ETH has risen 40% in three days and has already made it to the hot search list on domestic social media. To be honest, this should be considered a bit of a breakout; if we follow the theory of 'breakout equals demise,' Ethereum should take down the bulls in the next few days. The bulls have been enjoying their profits too much.

Not to elaborate on too much news, today’s market mainly stems from the signing of the China-US trade agreement.

Market Analysis

Bitcoin stands above the 105,000 mark, just 4% away from the historical high of 110,000. I think it’s still challenging to directly reach a new high, but a new high should emerge. Do you remember what happened when Bitcoin broke 69,000? It killed the bulls! If we reach that position, there should be a spike in the market.

Ethereum has broken 2600, but the exchange rate still hasn’t returned to 0.025. This exchange rate should be achievable, but once it reaches this rate, it may take a breather. There is no financial market that can keep rising or falling indefinitely, especially not for an Ethereum valued at 300 billion USD. FOMO should not happen at this position.

However, it is highly probable that it has not completed its run; seeing 2800 or even 3000 is possible.