The Shocking Plunge of ETH: Three Major Culprits Exposed! Retail Investor Self-Rescue Guide
On May 29, ETH plummeted wildly; who was behind the knife?
Trigger One: ETF Dream Shattered
The SEC suddenly demanded that institutions like BlackRock rewrite the 19B-4 documents, causing the probability of approval in May to drop from 75% to 20%! Panic selling ensued in the market, with over $650 million in long positions wiped out in a single day!
Trigger Two: Whales Dumping
A mysterious address (starting with 0xde0) placed sell orders for 180 million ETH, crashing through the key $3,750 level in just 15 minutes! Programmatic follow-up trading exacerbated the situation, leading to a market collapse.
Trigger Three: Long Position Liquidation Wave
Leverage long positions saw annual returns soar to 80%, but after breaking the 3,700 support, 420 million in long positions were liquidated in a chain reaction, causing a sudden 30% drop in long positions on exchanges.
Deep-rooted Issues
Ecosystem Bleeding: L2 trading volume decreased by 12% weekly, staking returns of 4.8% are less attractive than U.S. Treasuries, leading to a night of institutional withdrawals.
Regulatory Strangulation: The SEC insists that “ETH is a security,” causing traditional funds to hesitate to enter the market, leading to a liquidity crisis.
Market Manipulation: Whale selling + ETF expectation speculation, cashing out after harvesting, with retail investors holding the bag.
Retail Investor Self-Rescue Guide
Bottom-Fishing Experts: Buy an additional 10% for every $100 drop below 3,200 (institutional cost zone, hold firm and don’t panic).
Contract Traders:
→ Short at 3,550 on a rebound, stop-loss at 3,650 (target 3,300) → If it breaks 3,650, go long, stop-loss at 3,550 (target 3,850).
Life-Saving Signals:
ETH daily reduction on exchanges > 50,000 → Whales are accumulating.
Panic index < 20 → Bottom-fishing is foolproof.
Truth Bomb:
This plunge is a result of the ETF expectation bubble bursting, not that ETH has become worthless! After the Cancun upgrade, Gas fees are at 10% of the original, daily active users on chain games like Farcaster have exceeded 900,000, and the ecosystem remains stable! If we hold above $3,200, the foundation of the bull market still exists!
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