July 22, 2025
In just the past two weeks, Ethereum has achieved an increase of about 50%, leading the way. However, the next fact that must be mentioned is that Ethereum is about to face a key resistance zone, 3800-4100, this previous high point. Relatively speaking, I think the difficulty of breaking through 4800 points will be greater. According to on-chain data and funding rates, many people have already leveraged and gone long, making it easy for a pullback to clear long positions. 'Bull market pullbacks' is based on the logic of not wanting those who chase prices to easily hold onto coins.
Psychologically, the 4000 points have already achieved about 3 times the increase from a relatively low point, and there is a huge demand for profit-taking in the market. At the same time, because bull markets always grow and strengthen amidst doubt, at this stage when I say the bull market has arrived, many people may still have questions in their hearts. Therefore, a slight fluctuation may tempt them to sell. Of course, as long as it is profitable, selling at any time is fine, but if you sell now and the market enters a crazy bull phase later, do not chase the prices easily. In the past few months, I was worried that everyone was afraid to get in, and in the next few months, I will have to remind everyone not to jump in recklessly. The best strategy for the next six months is to only sell and not buy with a large position.
Data shows that the inflow of Ethereum ETFs reached a record high last week, totaling $2.182 billion, more than double that of the previous week, making it one of the main sources driving Ethereum's rise. In contrast, Bitcoin's net inflow was $2.385 billion. I have mentioned before that ETFs are an important entry and exit point. Once the market improves, off-exchange funds can allocate and increase positions through ETFs, and now is the time to prove that. Another piece of news is that Strategy announced an additional investment of $730 million to increase its holdings of 6220 BTC, indicating that Wall Street's game of buying coins through US companies is still ongoing.
In the upcoming market, normally it would just be a slight adjustment, and the so-called slight means a decline of no more than 10%, ideally within 5%. The purpose is just to eliminate some high leverage, and it will not provide an opportunity for re-entry. From the market perspective, it already feels like a season of altcoins, but currently, they are mostly mainstream altcoins. Objectively speaking, 90% of the previous round of small altcoins have no chance of rising. I advise everyone to cut losses when I indicate risks in the market and leave more funds to prepare for the subsequent market.
Thank you for your attention and likes.