Brothers, the market has exploded! Ethereum skyrocketed past 3700 USD, hitting a new high since last December, with a 24-hour surge of 7.46%!
But behind the revelry lurks danger—nearly 75,000 people across the network have been liquidated, with 587 million USD evaporating. Don't panic! Aiers will help you analyze the data and see the truth and opportunities behind this market!
Three major driving forces behind the surge; understanding them will allow you to win effortlessly!
Driving force 1: Institutional funds are entering the market with real money!
Ethereum spot ETF approved: On July 20, the US approved Ethereum spot ETF, with Wall Street giants like BlackRock and Fidelity going all out to buy, with institutional ETH purchases reaching 12,000 units in a single day (valued at 370 million USD).
On-chain data confirms: The ETH inventory on exchanges has fallen to a five-year low, and whale addresses increased their holdings by more than 30,000 ETH last week! This is not retail behavior, but a signal of institutional lock-up!
Driving force 2: Policy loosening ignites market confidence.
The US crypto bill has passed procedural voting: a regulatory framework has taken a crucial step, with institutions like Grayscale lowering ETH trust fees, paving the way for traditional funds to enter.
Countdown to 'invitation-based' licensing in Hong Kong: On August 1, regulations for stablecoins will be implemented, with giants like Standard Chartered and Ant Group entering the market. After compliance channels are opened, 9 trillion USD in retirement funds (401k) may flow in!
Driving force 3: Resonance between technical aspects and liquidity.
Technical breakthroughs establish a bull market: ETH's daily line has broken through with three consecutive strong green candles, MACD golden cross + moving averages in a bullish arrangement, 3700 USD has turned from resistance to support.
Liquidity 'two-pronged approach': Tether adds 2 billion USDT on the Ethereum chain, and USDCTreasury supplements 250 million USDC, activating 2.25 billion USD hot money into the DeFi ecosystem!
The liquidation wave warns: high leverage is the 'self-destruct button'!
The data is shocking: nearly 160,000 people liquidated in 24 hours, with short positions losing 360 million USD and long positions also liquidating 220 million USD!
Root cause analysis:
Out of control leverage: Overall contract holdings across the network exceeded 86 billion USD, reaching a historical high, with leverage above 5 times being the 'disaster zone' for liquidations.
Institutional harvesting tactics: sudden spikes after surges (like BTC's sharp drop after breaking 120k), specifically targeting high-leverage buyers!
Aiers' hard-learned lessons:
Don't touch high leverage! Institutional cost lines are around 3650-3700 USD; if it falls here, they will protect the market, but leveraged players are already wiped out!
Personal opinion: Should we be greedy or retreat now?
The bull market has just begun, but the game has changed!
This market trend is a slow bull led by institutions, not a crazy bull driven by retail investors! ETH breaking 3700 is just the starting point; the next targets are 3900-4000 USD, but there will be significant volatility along the way.
Retail survival rule: three moves to counter institutions!
Position management '333 principle':
30% of the base position holds ETH (add more if it drops below 3650);
30% of flexible funds are positioned for sector rotation (Layer2's OP, ARB, the RWA concept $ONDO);
30% cash for panic buying (buy in batches when falling more than 5%).
Stay away from the three major landmines:
Shady exchanges (small exchanges at risk of running away);
High-yield 'meme coin' schemes (daily interest of 2% = principal loss);
No application Layer1 (largest bubble).
Embrace the compliance dividend:
Keep an eye on ETF fund inflow data and the Hong Kong license list (OSL, COIN); the policy tailwind is the key to wealth!
Ultimate prediction: The ETH/BTC exchange rate will reverse!
Over the past three years, ETH's growth has lagged behind BTC, but this time it's different!
DeFi, Layer2, and RWA ecosystems are exploding, with the real demand for ETH crushing the speculation of meme coins.
The BlackRock report clearly states: the ETH/BTC exchange rate of 0.06 is a historical bottom; after breaking through, it looks at 0.08 (indicating ETH's growth will crush BTC)!
Conclusion: Be 'smart money', not 'cannon fodder'!
Ethereum breaking 3700 USD is the starting gun for institutional entry, but the high leverage liquidation wave has also exposed the fatal weaknesses of retail investors.
Bull markets often see sharp drops; slow rises and rapid falls are the norm!
I am Aiers, guiding you through the fog of the cryptocurrency world to seize hardcore opportunities! Follow me for continuous updates on crypto opportunities amidst the storm of trade wars! What you lack is not luck, but the top-tier team of Aiers!