The ups and downs of the cryptocurrency market are as exciting as a roller coaster ride, but they always make your heart race! Today, ETH dropped sharply again by 300 points, a decline of nearly 5%. Seeing this drop, many may feel a bit anxious, but I want to say - stay calm! Don't rush to bottom fish; we haven't seen the most exciting part yet!
First, today's sharp drop is not the beginning of a market collapse, but rather a 'washing' action by large funds. At noon, ETH broke below 4300, and many bottom-fishing friends became excited with strong buying, thinking this was support; however, in the afternoon, the market gave them a lesson. Large funds took the opportunity to sell, and the price rapidly declined. Early in the morning, Lao Chen warned that if it broke 4350, it could drop to 4200, and the script was fulfilled as expected:
However, Lao Chen wants to especially remind: this kind of short-term fluctuation must be clearly understood - it is a manifestation of capital games, not a precursor to a market crash. Current market sentiment is influenced by the uncertainty of Federal Reserve policies, and everyone is guessing whether there will be interest rate hikes or cuts in the future, which makes short-term capital flows very sensitive. The volatility of investor sentiment also exacerbates market instability. So, don't rush to make decisions; clarify the logic of the market before taking action.
But! Don't rush to miss opportunities! Although today's sharp drop is concerning, the future market is still full of opportunities. Here are a few key points to remind everyone:
1: Institutional funds are entering, and they hold a long-term positive outlook on ETH.
Large institutions remain optimistic about ETH in the crypto market. Although there are fluctuations in the short term, in the long run, Ethereum, as a core asset in the decentralized finance (DeFi) and NFT market, still has market value support. Those funds will not be easily scared by short-term fluctuations; they are positioning for future trends.
2: Market demand remains strong, and ETH demand continues to grow.
The booming of emerging fields like DeFi and NFT continues to drive demand for ETH. As long as these areas continue to grow, the price of ETH will rise.
However! Don't forget that there are still risks in the market in the short term. Large funds are still adjusting their positions, and short-term fluctuations may become more intense; investors need to remain vigilant at all times.
Short-term operational strategy: Steady your position and hold key levels!
Key support: 4150
This is currently a relatively strong support level. If the ETH price retraces to this position, it is likely to receive buying support and rebound. Everyone should pay attention to this level; breaking below it is a warning.
Watershed: 4360
The current watershed is 4350; if it breaks through, a rebound is possible. If it doesn't break, it may continue to fluctuate downward. This position is very critical, so keep a close eye on it.
Strong resistance: 4570
The current resistance level is at 4500, which has been suppressed for a long time. If ETH breaks through this level, the market will start again!
Summary: Operate rationally and seize big opportunities!
To summarize, today's sharp drop is a normal market fluctuation; there is no need to panic. In the short term, ETH may continue to fluctuate, but from a medium to long-term perspective, ETH still has potential for growth. The key is to keep an eye on support and resistance levels, operate rationally, and not lose direction amidst market fluctuations.
Remember, there are no eternal surges and no eternal crashes in the cryptocurrency circle; opportunities and risks coexist. Establish your own strategy, do not blindly follow the trend, set stop-loss orders, and control your position to survive longer in the market's waves!
