A bull market is not a straight line, but a wave stirred by whales; only those who can navigate the volatility can find the deep-sea gold.
Do you understand the reasons for the crash?
Last night, ETH experienced a thrilling roller coaster. The trigger was Trump's formal signing of the (Genius Act), which provided official endorsement for stablecoins, prompting institutions to act.
BlackRock's Ethereum ETF swept $549 million in a single day, directly pushing ETH to peak at 3700.
However, after the feast, the early morning welcomed a 'fast run' market—short-term profit-taking combined with whales selling approximately 19,500 ETH on the FalconX platform, along with $587 million in leveraged liquidations across the network (involving nearly 160,000 accounts), staged a textbook-level 'bull-bear double kill' drama.
Current core logic: policy, funds, and technology are the three driving forces.
Policy accelerator pushed to the limit: Trump not only signed the bill but also stated he would open up $8 trillion in 401(k) pension investments into cryptocurrencies; even a small inflow could push ETH to a new level. However, be wary of potential market disruptions from the EU's new sanctions against Russia, as geopolitical risks remain.
Institutional buying like a money printer:
BlackRock is buying ETH at a pace 5 times that of BTC, with a single-day purchase of $549 million;
Public companies like SharpLink have recently hoarded 320,000 ETH, with a cost of $2745, realizing a floating profit of $210 million;
The net inflow of 9 ETH ETFs in the U.S. reached a record $727 million in a single day, with demand being 107 times the new ETH supply for that day—buying speed is a hundred times that of miner output, providing strong price support.
Technical aspect: 3520 is the life-and-death line, 3745 is the takeoff key:
The bullish critical point is in the range of 3525-3600; if it breaks down, it may probe down to 3360;
The bearish defense line is at 3700-3745; if broken, the target will point directly to 4100 or even the weekly level of 4950;
Daily RSI is overbought, but the 4-hour MACD shows no divergence; the trend is not exhausted—sharp drops do not mean a turn bearish, but rather a chance to pick up buyers.
Converging today's strategy
Short-term:
Aggressive players can lightly try going long at 3550-3530, with a stop-loss at 3510.
Target 3650-3700; cautious players can short in batches at 3700-3720, with a stop-loss at 3760, targeting 3600-3550.
Medium to long-term:
If the weekly line holds at 3400, continue holding; institutional hoarding and ETF accumulation of $5.53 billion provide a solid bottom, targeting 4950; remember to fasten your stop-loss seatbelt.
If Trump releases more details on 401 tonight, a second wave of volatility could be imminent.
Can 3520 hold? Will 3745 break through?
Pay attention to convergence; the convergence team will give fans real-time alerts—10% fluctuations hide risks, but also create good opportunities; are you willing to reach out?
Join the convergence team to know today's precise points.
The market rewards the brave, but only by surviving and paying attention to convergence can one capture the main uptrend and obtain everything you want.