Ethereum rebounded from $3350 to above $3900 in just 5 days, a speed that exceeded expectations and intuitively showcased Ethereum's strong performance recently.
Let's discuss the core factors driving the rise:
1. Yesterday, related policies from the 'understanding king' relaxed, allowing US pensions to enter the cryptocurrency market, injecting expectations of incremental funds into the market;
2. Multiple US stock companies are actively increasing their positions in Ethereum—amidst high Bitcoin prices, Ethereum has become a more cost-effective allocation choice, a trend that is particularly crucial;
3. The probability of a rate cut in the US in September has significantly increased: labor data showed weak performance, and the market's expectation of a rate cut has reached 90%, with easing expectations providing support for risk assets.
With multiple favorable factors stacking up, this means that Ethereum is likely to continue attracting capital inflow.
From a technical perspective, Ethereum has currently reached the $3950 resistance level, which is also a key point of previous pullbacks. However, compared to the past, the probability of breaking new highs this time is significantly greater.
From an operational standpoint, it is recommended to take positions near the 7-day moving average, specifically in the $3800-$3830 range. It should be particularly emphasized: under the current trend, one should firmly adopt a long strategy and avoid short positions.
