This sudden drop in Ethereum has many people panicking again: Is it going to crash? What exactly happened?
It's actually quite simple, there are four reasons, let's break it down:
First, the previous rise was too rapid, leading to short-term overbought conditions, technically it needed a pullback, at the daily high, the candlestick pattern shows upper shadows + doji, which is a normal pressure.
Second, many short-term investors cashed out after the rise, with a lot of profit-taking around the 3670 mark. After this round of cashing in, new money hasn't followed up, so naturally, it needs to adjust downwards.
Third, market sentiment is also changing; Bitcoin has been struggling around 120,000, and everyone is starting to be cautious. Coupled with the decline in external stock markets, some people are simply taking profits to avoid risk.
Fourth, don’t overlook the macroeconomic factors; the Federal Reserve is wavering on whether to cut interest rates, the dollar is strengthening, and high-risk assets are feeling some pressure, with ETH being no exception.
Therefore, this wave is not a crash, but more like a normal pullback for recovery. As long as it holds the 3550 to 3580 range, the overall trend remains intact, and it could surge again at any time.
Remember this: Pullbacks are opportunities, not panic. As long as the trend is still in place, buying low is always more comfortable than chasing highs!
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