Recently, ETH has shown strong performance, which can be attributed to "light selling pressure, influx of funds, and reduced circulation," driving its momentum to continuously accumulate:
1. Reduced selling pressure, stable market chips
The inventory of ETH on exchanges is at an 8-year low, indicating a significant reduction in the chips available for short-term selling, resulting in extremely light selling pressure, making it easier for the market to form an upward trend.
2. Institutional funds continuously entering the market
Several institutions have begun to significantly increase their holdings of ETH, with layouts similar to an "ETH version of MicroStrategy" becoming evident. One institution alone has invested $2.9 billion, and the trend of Wall Street funds entering the market is clear, injecting strong momentum into the market.
3. Further contraction of circulation
Nearly 30% of ETH is being used for staking and locking, directly reducing the market circulation, with the supply and demand relationship leaning towards tightness, driving the price center upwards.
Looking back to 2017, ETH also experienced a hundredfold increase after a reduction in retail chips, and the current market characteristics are similar to that time. In the short term, $4100 and $4900 are the phase targets that the market is paying attention to.
For ordinary investors, the following strategies can be noted:
- Holders can remain patient and avoid being shaken out by short-term fluctuations;
- Non-holders should avoid blindly chasing highs, and can wait for pullback opportunities, as a phased layout is more prudent.
Overall, ETH is currently in a state of "light selling pressure, sufficient funds, and tight chips," and trend opportunities are worth paying attention to, but it is still necessary to respond rationally to fluctuations and ensure good risk control.
1. Reduced selling pressure, stable market chips
The inventory of ETH on exchanges is at an 8-year low, indicating a significant reduction in the chips available for short-term selling, resulting in extremely light selling pressure, making it easier for the market to form an upward trend.
2. Institutional funds continuously entering the market
Several institutions have begun to significantly increase their holdings of ETH, with layouts similar to an "ETH version of MicroStrategy" becoming evident. One institution alone has invested $2.9 billion, and the trend of Wall Street funds entering the market is clear, injecting strong momentum into the market.
3. Further contraction of circulation
Nearly 30% of ETH is being used for staking and locking, directly reducing the market circulation, with the supply and demand relationship leaning towards tightness, driving the price center upwards.
Looking back to 2017, ETH also experienced a hundredfold increase after a reduction in retail chips, and the current market characteristics are similar to that time. In the short term, $4100 and $4900 are the phase targets that the market is paying attention to.
For ordinary investors, the following strategies can be noted:
- Holders can remain patient and avoid being shaken out by short-term fluctuations;
- Non-holders should avoid blindly chasing highs, and can wait for pullback opportunities, as a phased layout is more prudent.
Overall, ETH is currently in a state of "light selling pressure, sufficient funds, and tight chips," and trend opportunities are worth paying attention to, but it is still necessary to respond rationally to fluctuations and ensure good risk control.
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ETH
4,189.47
+6.96%