Ethereum is about to start an independent trend, and the upcoming altcoins will enter a baptism stage!
The first half of the year is nearing its end, and 2025 will officially enter its second half. Looking back at the entire first half of the year, it can only be described as 'bleak' - Ethereum, as the second-largest in the industry with a market capitalization of over a trillion, saw its price plummet from $4,100 to $1,400.
A multitude of altcoins are also struggling to escape the fate of plummeting, with most cryptocurrencies experiencing declines of several times or even dozens of times, constantly refreshing historical lows, and market sentiment is trapped in extreme panic. Now the market is almost entirely bearish, and even though Ethereum rebounded from $1,400 to $2,700 in May, few believe that the trend can continue to strengthen, but rather think that a sharper decline will follow this round of increase.
The situation for altcoins is even more pessimistic, with the market generally believing that only Bitcoin possesses investment value in the entire cryptocurrency circle, while other coins seem to have become 'lambs to be slaughtered under the main force's scythe', buying in is equivalent to giving money to the speculators.
In the past two days, ETH has shown stronger 'anti-dip' characteristics compared to other cryptocurrencies - during the market correction, its decline has noticeably narrowed. This phenomenon releases a key signal: the major funds may have completed their previous adjustment targets and have no intention of continuing to crash the market significantly.
ETH's anti-dip performance this round mainly stems from three driving factors:
Firstly, policy benefits are being released: Last week, US regulatory agencies relaxed the staking policy for the POS model, which is the biggest potential benefit for ETH in the second half of the year. Previously, ETF staking applications had not received SEC approval for a long time, and the new policy means that future applications may not need to be proactively filed, although the details are yet to be clarified, it has already released signals of regulatory easing.
Secondly, financial innovation is driving: the ETF model's 'micro-strategy' product SharpLink has emerged, and similar plays may soon flood mainstream cryptocurrencies like SOL. Although most projects are essentially financing needs, it can be foreseen that SOL versions of similar products are already in preparation and are likely to be announced when the market turns bullish, while related parties may currently be secretly accumulating chips.
Thirdly, stablecoins and traditional finance are linked: The US and Hong Kong recently introduced new policies for stablecoins, and last week, the stablecoin concept sectors in A-shares and Hong Kong stocks surged in popularity. The stablecoin issued by JD.com chooses to land on the ETH chain, combined with the continuous promotion of RWA (Real World Assets on-chain), ETH, as the world's first public chain, has significantly higher attractiveness to traditional financial institutions than other public chains due to its highest degree of decentralization and reliability.
Looking ahead, the trend of altcoins will become a key observation window. The current market condition is very similar to the 'last round of emotional clearance' phase - panic selling is frequent, and this is often a precursor to a market reversal. From this, we can draw the following conclusions:
Altcoins are undergoing 'extreme panic' cleansing: this is the last round of selling before a rebound, and market sentiment has reached freezing point;
Bitcoin's correction to $100,000 becomes a reversal point: BTC stabilizing below $100,000 becomes the fuse for a reversal in market sentiment;
ETH's anti-dip signals that fund adjustments are nearing completion: the main layout is basically finished, and the market structure may shift back to a strong position;
Golden pits are born at the extremes of sentiment: the true bottom is not guessed, but emerges from the 'extreme emotions' during national panic and confidence collapse.
The current market is filled with wails, and many investors panic and cut their losses due to fear of further losses. However, historical patterns show that when the market falls to the point of 'everyone in despair, discussing cryptocurrencies with fear', the bottom is often within reach, and a rebound may start at any time.
Small cryptocurrencies are currently experiencing the most severe phase of this downturn, with extreme panic often serving as a dual signal for the end of the decline and the prelude to a rebound. If Bitcoin can drop to a relatively low level (below $100,000) and establish a stable structure, the probability of a overall market recovery will significantly increase.
ETH's strong performance is essentially an external manifestation of large funds' layouts nearing completion, suggesting that the market may have quietly entered a turning cycle. True smart investors never attempt to accurately catch the bottom, but wait for the market to fall into extreme panic, when a wave of selling surges - at this time, it is often the window of opportunity with the lowest risk and the greatest chance.
In terms of operational strategy, the altcoin sector is consolidating alongside mainstream coins, market sentiment remains low, and the altcoin index has once again fallen to historical low levels. Once mainstream coins stabilize after their corrections, one can gradually follow up with layouts:
Meme track: Pay attention to the adjustment opportunities of coins like penple;
ETH ecosystem: Projects like SSV, EIGEN, ETHFI can continue to hold;
BSC chain: Recently, Alpha activities have been frequent, and it is recommended to actively participate and accumulate Alpha points;
MEME market: Keep a close watch to capture short-term hotspots;
SOL chain ecosystem: Popularity is gradually recovering, and related high-quality projects can be focused on.
If you already hold altcoin positions, even if you are temporarily stuck, you can patiently wait for the market to warm up - the market cycle has never stopped, and the dawn may have quietly emerged at the end of panic.
Strong recovery, assets doubled! Follow the trend in rainy days, layout in advance, and easily reap big profits.
Continue to pay attention: H DMC