1. Why did ETH suddenly surge to $2530? A lot of people betting on the price drop got liquidated and had to buy back at high prices to cover their positions, pushing the price even higher. This is called a short squeeze.
When the price breaks through key resistance levels, such as $2530, computer programs automatically trigger buy signals, bringing in more funds. Within a month, 1.1 million ETH worth $27.5 billion was withdrawn from exchanges, and the number of coins available for sale is decreasing, so when more people want to buy, the price will inevitably rise.
2. A mysterious large holder bought 18,000 ETH in one hour on May 27, directly driving up the price, while institutions bought 57,000 AAVE. Ethereum has just completed the Pectra upgrade, similar to a mobile system update, making transactions faster and cheaper, attracting more people and money to participate. Recently, U.S. stocks have also risen, and ETH's movement is about 70% similar to U.S. stocks. Traders feel the market is heating up and are buying in.
3. Short-term caution on pullbacks: 88% of liquidations are from long positions (borrowing money to bet on price increases). If the price drops below $2500, these people will face liquidation and sell off. If it stabilizes at $2600, it might surge to $2700-2800 as a critical support line. If it breaks below $2500, run quickly, with $2480 being the second line of defense.
4. If it stabilizes at $2600, you can make small purchases to chase the price up, targeting $2700; if it falls below $2530, cut losses immediately.
The ETH to Bitcoin exchange rate has fallen to a historical low of 0.023, and it can be bought in batches. Focus on staking data and the progress of the Layer 2 ecosystem.
This surge is the result of short liquidations, large holders accumulating coins, and technological upgrades working together. There may be a short-term pullback to wash out weak hands, but in the long term, the upgrade benefits and ETF expectations (with a 75% probability) suggest prices can continue to rise. Remember not to go all in, and keep leverage below 3 times. The large holder's withdrawal data (with 2.16 million ETH remaining on exchanges) is more reliable than candlestick charts.
Opportunities and risks coexist in the cryptocurrency space, so maintaining vigilance and finding the right timing is key. If you want to keep up, follow my profile for free sharing.
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