In the early morning, Brother Yang came to discuss the Ethereum (ETH) market! The current trend is quite interesting, with short-term fluctuations but a bullish outlook in the medium to long term.

First, let's look at the technical indicators. The moving averages are in a bullish arrangement (EMA20/50/100/200), and the MACD is also in the positive zone, indicating that the overall trend is not bad. However, the RSI is overbought (70+), and the leverage ratio is approaching historical highs (ELR=0.68). Net inflows into exchanges are still increasing, suggesting short-term selling pressure and a need for a period of adjustment.

Now, let's talk about the fundamentals. Institutions are pouring into Ethereum like crazy! The cumulative inflow of spot ETH ETFs has reached 9 billion, with a managed asset scale of 20.3 billion, and giants like BlackRock have holdings accounting for 14.5%. Moreover, Ethereum's deflationary mechanism is becoming stronger, with EIP-1559 destruction and staked locking leading to over 30% of the circulating supply being locked. The annual inflation rate is less than 0.5%, which means that in the long run, supply is decreasing, and prices are bound to rise. Additionally, with technical upgrades, the Pectra upgrade will be implemented in Q4, which will reduce gas fees and improve smart contract efficiency. Layer 2 transaction costs have already dropped by over 60%, which is highly beneficial for the development of the Ethereum ecosystem.

Brother Yang offers a trading suggestion: if there is a pullback to around 4400 - 4450, you can go long, targeting first at 4530, and then 4600. In the coming days, it might even reach around 4700. However, the market changes quickly, and this strategy is time-sensitive. It is for reference only; everyone should invest cautiously! #ETH🔥🔥🔥🔥🔥🔥