Ethereum Breakthrough Battle: Short Sellers Retreat Ignite Upward Engine
This morning, ETH violently surged by 5% to reach a six-month high, the 3600 defense line was broken amidst massive trading volume, over 300 million USD in short positions were instantly wiped out, showcasing a precise encirclement by the bulls.
The Tug-of-War at Key Price Levels
The breakthrough at 3600 is of symbolic significance: on-chain whales have continuously purchased tens of thousands of units in the 3600-3620 range, while the derivatives market has set a record for the largest liquidation this year. The technical indicators show that the MACD green bars are expanding like a rocket fueling up, but the hourly RSI's decline suggests that profit-taking orders are accumulating in the 3650 area, requiring caution against short-term chip loosening.
3700 is a crucial watershed: a breakout with volume will open up the space to 4000, but if it pulls back, 3520 will serve as the bulls' moat. Currently, the StochRSI shows extreme divergence, often indicating a violent rebound, so it’s necessary to hold onto chips during the washout phase.
The Driving Force Behind Altcoin Market
Capital rotation is evident: BTC's dominance has dropped to a four-month low of 62.2%. After the ETH/BTC exchange rate broke 0.0317, the average increase of leading altcoins reached 137%.
Institutions continue to accumulate: BlackRock and other Ethereum ETFs attracted 730 million USD in a single month, and compliant capital entering the market has become a foregone conclusion.
Supply-side tightening: Exchange ETH reserves have hit an eight-year low, with whales accelerating transfers to cold wallets, establishing a tightening circulation situation.
The speech from the Federal Reserve is a variable tonight, but the 3600 cost zone for whales forms strong support. With BTC's dominance declining alongside supply depletion, the potential for altcoin season is significant, and a pullback may present a good opportunity to increase positions.
Soul-Searching Question: When indicators show extreme divergence, do you choose fear or greed?
