Ethereum's 10% drop from its recent peak is a healthy correction in the upward trend.
Ethereum has tripled in the past three months, and if the price returns to the 4,000-4,100 USD range and then rises strongly, it will be a reliable signal confirming the upward trend.
MAIN CONTENT
Ethereum's 10% drop is a natural correction after a strong price increase.
Ethereum has tripled in value in the last three months.
Active trading volume helps make the upward trend more sustainable.
Is Ethereum's 10% drop a bad sign for the cryptocurrency market?
The recent approximately 10% drop in Ethereum is not a sign of weakness but a positive market correction that is still in an upward trend.
Simon Dedic – founder of the consulting and investment company Moonrock Capital, evaluates this as a healthy correction to consolidate the long-term increase. In the past three months, Ethereum's price has tripled, demonstrating clear market strength. The correction helps filter positions and create a solid foundation for the next increase.
Ethereum undergoing a 10% correction is a necessary step to solidify a sustainable upward trend.
Simon Dedic, CEO of Moonrock Capital, 18/08/2023
The fact that Ethereum price retests the 4,000-4,100 USD range and then rises strongly is a technical signal confirming that the upward trend is still maintained. Investors should not be concerned about short-term fluctuations but should maintain confidence in the promising cryptocurrency market.
Why does high trading volume help make Ethereum's upward trend more sustainable?
Simon Dedic emphasizes that the rapid increase in trading volume of Bitcoin, Ethereum, and other cryptocurrencies during the price rally indicates a solid foundation for the upward trend.
Active trading volume helps strengthen market liquidity and reliability while absorbing short-term fluctuations. This minimizes the risk of weakening the upward momentum due to sell-off forces or FUD, thus supporting the long-term upward trend.
Maintaining regular trading activity at important price levels shows that many large investors such as whales and institutions still trust and actively participate in the market, creating strong momentum every time the price returns to the support zone.
What should be remembered when the cryptocurrency market experiences strong price fluctuations?
The founder of Moonrock Capital advises investors not to overreact to small short-term fluctuations, especially in bullish markets.
Maintaining a strong mindset and patiently waiting for confirmation signals from the market is essential to seize sustainable growth opportunities and avoid being swept away by temporary emotions.
Focusing on technical analysis and market indicators helps identify the right entry/exit points, minimizing risks when cryptocurrency prices correct.
Frequently Asked Questions
Does Ethereum's 10% drop signal the end of the upward trend in the market?
No, this is just a healthy correction that helps stabilize and reinforce the long-term upward trend.
At what price can Ethereum recover to confirm the upward trend?
The 4,000-4,100 USD range is considered an important threshold for retesting and bouncing back.
Why is trading volume important for cryptocurrency price trends?
High volume reflects widespread participation and helps sustain the upward trend amid price fluctuations.
How to avoid confusion when cryptocurrency prices fluctuate wildly?
Maintaining knowledge, monitoring technical indicators, and keeping a steadfast mindset is the most effective way.
Who is a reliable source for insights on Ethereum trends?
Experienced experts, CEOs of reputable blockchain investment funds recognized in the industry.
Source: https://tintucbitcoin.com/ethereum-tang-manh-khi-retest-4-000-usd/
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