“When the US stock market sneezes, the cryptocurrency market catches a severe cold! Last night's flash crash is a living example—technical issues were smashed to ICU by US stock market data!”
Brothers, did you see that wave of ETH's plunge last night? It was really thrilling! Just as it touched $2550, before you could even settle down, it directly dropped to 2363, almost $200 gone in a flash, evaporating 7% in an hour, faster than a roller coaster! Many brothers privately messaged me asking what happened, let me break it down for you:
Technical aspect: It is already at the end of its tether, just holding on!
Case: Look at that $2550, like an iron lid, it has charged three times in the past three days but couldn't break through. This is like chasing a girl; if you asked her out three times and she didn't come out, the fourth time you still try to push, the result is likely to be a cold shoulder! The bulls have exhausted their strength and lost their confidence.
Case: More critically, although the price touched a small new high before the plunge, if you look at that RSI indicator in the 1-hour chart, it's actually going down! It's like driving a car, you floor the gas, but the speed keeps decreasing; you say, how can it not break down? This is called "divergence at the top," a textbook warning for a decline!
Deadly blow: And then? The price suddenly "crashed" through the key support of $2500, and the trading volume suddenly increased. This is like knocking down the first domino, triggering a large number of programmed stop-loss orders, instantly causing a stampede! Retail investors saw the breakdown and also ran away in panic.
Qiu Ge's opinion on the matter:
The technicals have long buried the landmines! The price couldn't get above 2550 even after three attempts, what does that mean? It means the main force doesn't really want to push it up with real money! They might be luring in more buyers or waiting for an opportunity to escape. A correction? That's just a matter of time; last night the US stock market only provided an opportunity to ignite.
News: US stocks plummet, precisely triggering the crash!
Trigger: Last night at 9 PM (our local time), the US released retail data, and it was bad! Worse than expected. Goodness, the Dow Jones (representing large US company stocks) instantly crashed over 400 points! That scene was more exciting than the A-shares.
Why is ETH crashing? Right now, the cryptocurrency market and the US stock market are like "wearing the same pair of pants"! The correlation is frighteningly high (reportedly 90%). Why? Because a lot of the big money buying ETH and Bitcoin comes from the same batch of institutions! When the US stock market crashes, institutions are afraid of losing money, and their first reaction is to quickly sell off their "high-risk" assets to avoid risk. With a large market cap and good liquidity, ETH naturally becomes the first to get hit!
On-chain evidence: During the crash, it was clearly seen on-chain that someone on Coinbase dumped over 5000 ETH in one go! Can retail investors do that? Clearly, it was institutional big shots urgently avoiding risk and controlling it.
Key details matched up:
At the exact moment ETH broke below $2500, it coincided perfectly with the time the US stock market plunged! Isn't that enough to illustrate the problem? This crash was caused by the US stock market "dragging it down"!
What to do after the crash? Keep a close eye on this "big player's den"!
The price is wobbling around 2363 now, this position is crucial! Why?
Historical memory: In January this year during that wave of fluctuations, ETH had repeatedly rubbed against this area (2360-2380), forming a support level, like a psychological defense line.
On-chain evidence: Even more hardcore, on-chain data shows that over 450,000 ETH have accumulated in the 2360-2380 range! This is most likely the cost area for the main force's previous positions. They probably don't want to easily lose money by breaking through here, right?
Brothers, tonight's opening of the US stock market is the main event! If the US stock market can stabilize, ETH is very likely to organize a rebound near this "big player's den" (2360-2380)! But if the US stocks continue to drop, or if ETH breaks through 2360 with high volume... then we need to be mentally prepared for a "trip" to 2300 or even lower! Opportunities often hide in the bloody chips of others when the market is in panic, are you watching the market tonight?
“Is the bull market always missed? Is the bear market always catching knives? Follow Knife Brother! All-weather sniper strategy, you can make money whether the market goes up or down!”
#美国国债