ETH just surged to 4313 and then dropped to 4290, and many people are starting to panic? Don't worry, this is likely not a crash, but rather the main force playing tricks.
If retail investors are not shaken out, how can new highs be pulled up? A pullback is actually a good thing; in my view, 4400 might just be the starting point, and the real surge could still be ahead.
Why do I say a pullback is a good thing? What does the main force really want to do?
In simple terms, this is called 'digging a pit'. There are quite a few people who were previously trapped around 4300, and the main force does not want to let them easily break free, so they first smash the market to scare people into selling. After smashing, buy orders around 4250 and 4200 will increase, allowing the main force to buy at a low price. Once they have enough chips, the rally will be even stronger.
Key signals to watch are MACD and trading volume.
Although the MACD has crossed down, the trading volume is shrinking, which indicates that the main force hasn’t run away; they are just washing the market. Remember this: a shrinking volume pullback is often a false drop, while a volume increase drop is the real danger — right now, it clearly belongs to the former.
So when will the real rally start?
Breaking through 4400 is a strong signal. In previous attempts, ETH got stuck at this level, but if it can truly break through with volume, new highs will be basically secured, because this means the bears are surrendering and the main force is ready to exert power.
If you want to catch the bottom, where should you do it?
If it returns to around 4250, you can buy in batches; don’t go all in at once. Remember, when others are fearful, I am greedy, but set a bottom line, for example, if it falls below 4200, stop loss.
ETH is now like a tightly wound spring; the longer it builds momentum, the stronger the potential explosion.
If you are still watching from the sidelines, you might miss the opportunity; if you get shaken out, just look for another chance to get back in. The market doesn’t wait for anyone; you need to have the right understanding to make money.
I usually pay special attention to a 'mysterious indicator' of ETH, which can predict the direction of price movements in advance. If you want to learn, follow me; I will focus on this in my next article.
Trading cryptocurrencies is not about luck; it’s about understanding. The main force is laying out its strategy; do you understand it? Follow me to better understand the rhythm and seize opportunities.
