In the past day, the Ethereum market has been more thrilling than a roller coaster! Just yesterday, it was struggling at the bottom of a sharp decline, and in the blink of an eye, it staged a stunning comeback, with prices soaring to break the $2400 mark, peaking at $2450, a daily increase of 5.34%.
This dramatic reversal instantly dispelled the gloom of the previous day's plunge to $2108. However, recent investors are feeling anxious: is this the start of a rebound into an upward trend, or is it a trap set by the bears, waiting for everyone to jump in?
In fact, the previous sharp decline had long been foreshadowed. Market data shows that Ethereum's leverage ratio soared and set a historical high, while the derivatives market was frantically speculating, as if laying explosives for the crash. When the exchange rate of Ethereum to Bitcoin fell lower and the price broke the crucial $2400 defense line, highly leveraged investors panicked, and positions were continuously buried. The price range from $2380 to $2150 experienced a free fall due to the lack of buying support, and yesterday's sell-off left the market filled with cries of liquidation.
Subsequently, positive news caused the market to rebound and stabilize at the crucial $2400 level. The current Ethereum market is like standing at a crossroads, making it difficult to judge the direction ahead.
On one hand, there has been no movement in ETF funds, and institutions are on the sidelines; on the other hand, the $2150 weekly support level has become the last lifeline for the bears.
Recently, Ethereum has experienced dramatic fluctuations, which are a necessary reaction triggered by leveraged liquidations, and also reflect the market's uncertainty about the value after Ethereum's ecological upgrades.
In this market where liquidity is both an opportunity and a risk, who will be the next to be 'cut' by the market? The answer lies in the moment every trader opens leverage, and also in the difficult path of Ethereum breaking through technical bottlenecks.
After experiencing a sharp drop and subsequent rebound, the market for Bitcoin is also undergoing a recovery phase.
On the Bitcoin side, there is continuous positive news; the increase in BTC holdings by listed companies has somewhat influenced the support at the market price bottom. Recently, there has been strong resistance above, making the market difficult to rise or fall. The market has been calm as water in the evening, indicating that investor sentiment is heavily cautious.
Currently, the four-hour trend is near the upper track, and the Bollinger Bands show an opening state. Whether the old Fed's watchful attitude will affect the bulls' continued upward momentum will depend on subsequent news.
The Japanese Financial Services Agency has proposed approval of a Bitcoin spot ETF and a reduction in Bitcoin capital gains tax.
The winds of a spot Bitcoin ETF are about to blow in Asia. If Japan, South Korea, and Singapore all approve the Bitcoin spot ETF, how will the University of Tokyo respond?
The bearish trend on the daily chart has not yet been erased, and the bulls' counterattack can only temporarily ease. $103000 has become a key support level; if it breaks down, the market will likely plunge deeper, as the floodgates have already opened, and the downward trend will be unimpeded.
Factors that could delay Bitcoin's decline include peace in the Middle East and interest rate cuts by the Federal Reserve. The current ceasefire has come to a temporary halt, and whether the Fed will cut rates in July or September is still uncertain.
Summary: Recently, there has been a shift between bulls and bears, with significant volatility in the oscillating market. The upper pressure at $108000/2500 is difficult to break, while the bears are also eyeing with intent. Today's rebound has not completely reversed the bearish trend; at this moment, the support levels of $103000/2300 have become critical. If they break down, the bearish trend will continue, and we will see if the bulls can once again rise and stabilize around $106000/2480.
