Talk about the current Ethereum

An objective fact is that the price of $ETH is mainly driven by ETFs. On August 11-12, the net inflow of the U.S. spot Ethereum ETF exceeded $1 billion, with a cumulative inflow of $10.8 billion and an AUM of approximately $25.7 billion.

You can see this as long-term capital entering the market, or as a structural migration of ETF funds from $BTC to $ETH.

This type of capital has two characteristics:

1. More stable source of funds: Their client base is large and diverse. ETFs are included in various investment portfolios and pension plans, leading to a continuous and relatively passive, semi-automatic buying pressure.

2. More persistent buying behavior: The behavior pattern of this capital flow tends to result in sustained net buying for several weeks or even months. This essentially provides the ETH market with a stable and predictable underlying demand, which may form a slow bull trend.

If you are waiting for a fool's market, then $ETH itself may currently be in such a fool's market.

The strategy to respond to this market is also very simple: overweight ETH and bet on the main L2s, using the classic method of gradually building positions during pullbacks.

The only thing left to do is to pay attention to when ETF inflows start to shrink, when they begin to turn into outflows, whether the leverage is overheated, etc., and then reduce positions based on the corresponding events.