Institutions are buying in bulk, short sellers are getting liquidated, before ETH hits 5000, here's how retail investors can operate to ensure profits!
Good morning, brothers. The recent momentum of $ETH is strong, waking up to a direct rise to 4640! Let's talk about what's going on!
Currently, the cryptocurrency market is mainly dominated by institutional funds, with a strong upward trend. Major institutions like BlackRock have seen ETF net inflows exceeding $1 billion in a single day, BitMine plans to raise $20 billion to increase holdings, and 72 listed companies have hoarded 2.7 million ETH, which are all providing long-term support for prices.
Technically, ETH has broken through the critical level of 4600, getting close to the historical high of 4868. If it rises above 4700, it could trigger an $800 million short squeeze, as long positions are very concentrated in derivatives. The locked value in the DeFi ecosystem exceeds $140 billion, and the U.S. "GENIUS Act" has clarified stablecoin regulations, also allowing ETH to enter retirement accounts, potentially bringing in $12.5 trillion in long-term funds.
However, short-term volatility risks must be noted, with a volatility of 65% over the past 30 days, and a potential drop of 10% in a single day. The 4-hour MACD red bars are shortening, and the RSI is approaching the overbought zone. If it doesn't hold above 4600, it may pull back to the support level of 4200-4230. Additionally, a net inflow of 125,000 ETH in the last 24 hours indicates that whales are selling to take profits.
It is recommended to reduce risk in batches, such as dividing funds into three parts, adding one part for every 5%-8% drop, which can lower the average cost to around 4380; or using grid trading within the range of 4350-4800 to make swings. If it stabilizes at 4600 in the short term, one could keep an eye on the previous high of 4868; if it pulls back to 4300-4350, gradually add to positions with a stop loss set at 4200. In the medium term, after breaking 4868, one could aim for targets of 5000-5400; in the long term, hold 70% of the position in ETH without movement and invest 30% in promising altcoins like DeFi and Layer2.
Currently, the market is dictated by institutions, and large fluctuations are normal. Retail investors should avoid blindly chasing FOMO during surges; reverse positioning is easier to profit from. If you're worried about a drop, consider using dynamic stop losses or buying put options at 4400 to hedge against risk. The key is not to be swayed by emotions, using a phased strategy instead of haphazard operations, as institutions have already absorbed a lot of positions at the low point of 1385, and retail investors need to stay steady.
Unsure how to operate in this market? Follow me for strategies; execution depends on you! There are only so many positions available; the quick will get the advantage, and the slow will miss out!
