Meow fans, today let's talk about something hot - Ethereum stabilizing at 4,000, returning to our familiar '4xxx' price range. Don't forget, this was the ETH price four years ago! Time flies, and seeing this number again after four years makes me feel a bit emotional.
So, what are the most concerning questions for everyone right now? I guess it's definitely these two:
Will the altcoin season come?
I won't buy Bitcoin above 100,000, but would I dare to buy Ethereum above 4,000?
Today, let's analyze these two questions together.
Breaking 4,000: Key Breakthrough and Operational Thoughts for Ethereum
First, let's start with the trend of #Ethereum. I mentioned before that breaking through the K-bar at 2,140 is crucial for ETH. The importance of this K-bar has two aspects:
It has broken through the toughest resistance level of this bull market.
It has also changed the trend pattern of ETH against BTC, showing a clear reversal signal.
Without this key K bar, there may not have been the subsequent rise.
I remember saying that when ETH's price retraced to 3,900, I advised everyone not to rush to buy, as the 4,000 mark is a super tough resistance zone, and there are some issues with on-chain data. It's best to wait for a breakthrough before chasing.
It has been proven that after ETH's price retraced to 3,350 and then broke through 4,000 again, it confirms that the upward trend has been established. But that doesn't mean I will heavily invest above 4,000. After all, my position is already full. If I don't have ETH on hand, I might slightly chase in, but I will never heavily invest.
Why don't I buy ETH above 4,000?
For me, the price itself is not the key; what truly matters is the 'price difference'. As for ETH above 4,000, although it has broken through strong resistance, it doesn't suit me. I have ETH at lower levels, and I will focus on ecological coins and altcoins.
If you don't have ETH on hand, at this high position, consider whether you want to take a gamble.
Remember, safety is the most important thing.
Altcoins: How to determine if the altcoin season is coming?
#Altcoins are not just random coins that rise; we must see if they can surpass Bitcoin within a specific time frame. To truly judge if the altcoin season is coming, we need to look at several aspects:
1. Bitcoin's market share: If Bitcoin's market share is declining, it might be time to shift some Bitcoin positions into altcoins. You need to ensure that you have profited from Bitcoin and have sold some before considering switching to altcoins.
2. Market sentiment and fund flow: Look at social media like Twitter, Telegram, and Discord to see if there is a lot of discussion and 'fervor'. These are all signals that altcoins are about to explode. However, don't act impulsively; you need to know that many of these discussions are simply speculative mindsets.
3. Trading volume: Pay attention to the changes in trading volume of altcoins. If the trading volume of altcoins significantly increases and their market capitalization continues to set new highs, it means that funds are flowing in rapidly, and at that point, you can appropriately follow up.
However, be wary of the 'gambler's mindset'. Many people are not investing in the coins themselves but rather in the influence of a certain KOL. We must always remain calm and not be swayed by short-term emotional fluctuations.
Summary: How to plan in this bull market?
The biggest difference in this bull market is that the driving force of funds has shifted from retail investors to institutional funds. Institutional funds are more inclined to flow into large-cap projects, especially those that are transparent and regulated in the U.S. Therefore, for ordinary retail investors, it's essential to follow this trend and not fantasize about bottom-fishing those obscure small altcoins.
If you already have Bitcoin and Ethereum and have made profits from them, consider converting part of your holdings into altcoins, but only if you have already made money in the altcoin market and have a higher risk tolerance.
In a bull market, we need to learn to judge the market's rhythm; do not blindly chase highs, and do not easily give up low-position planning opportunities.
📌 Safety Tip: In the crypto world, you need to look not only at trends but also at the flow of funds. You must first understand market sentiment and master the timing for entering and exiting.
Don't blindly follow trends based solely on price fluctuations; rely on rational analysis and long-term planning.
Let's stop the article here! If you're still unclear about the direction in the crypto world, why not join me in planning? Waiting for you, otherwise, in the next wave of the market, you might find yourself on the other side.
