Witnessed $ETH strong performance recently, and the reasons behind it can be attributed to "easing selling pressure, influx of funds, and low trading", which has driven its energy to continue increasing:
1. Selling pressure has eased, the market is stable.
Supply $ETH on the exchange is at its lowest level in 8 years, indicating that the desire to sell in the short term has significantly decreased, and selling pressure is very light, making the market more capable of forming an upward trend.
2. Continuous entry of institutional funds.
Many institutions have begun to significantly increase their holdings of ETH, with similar layouts to "ETH's micro strategy", where only one institution invested $29 billion. The trend of money entering from Wall Street is evident, injecting strong momentum into the market.
3. Trading volume has further contracted.
About 30% of ETH is used in secured storage, which directly reduces trading volume in the market and pushes the supply-demand relationship towards tension, driving the average price up.
In a review from 2017, ETH also saw a hundredfold increase after a decrease in individual investor share, and the current market characteristics resemble that period. In the short term, $4100 and $4900 are milestone targets that pique market interest.
For ordinary investors, the strategies can be observed:
- Holders of positions should be patient and avoid getting washed out by short-term volatility;
- Those who do not possess centers should not buy blindly; they can wait for pullback opportunities and distribute in safer installments.
Overall, ETH is currently in a state of "light selling pressure, enough funds, and tight chips", and it is important to follow directional opportunities, but volatility should be handled rationally and risks well managed.