After Ethereum surged to a new high, it has significantly retraced again. Is this bull market coming to an end???
In fact, as I mentioned last week, with the buying pressure from domestic investors over the weekend, funds would flow into Ethereum's ecosystem, breaking new highs on Sunday or Monday.
Last night, Ethereum broke new highs, reaching the 4957 level, but the market quickly retraced, starting a waterfall effect. Why did the market change?
①: Ancient whales of BTC sold off large amounts at market price, with no counterpart in the market, leading to a spread of panic sentiment and causing the market to collapse.
②: Ethereum surged to new highs, and low-priced chips at the bottom started to take profits in batches, with a large number of sell orders placed at new high positions to short, forming strong selling pressure in the short term.
③: The bull market is too heavy, and frequent washouts are quite normal. Many retail investors FOMO-ed in to chase the rally, only to be severely cut by the manipulators.
Therefore, in such market conditions, we must strictly implement profit-taking and stop-loss measures when trading [preferably using limit stop-loss, as market orders can slip in extreme conditions].
Currently, the intraday trend is also relatively weak, consistently moving in a downward oscillation trend. However, the possibility of continued significant declines is basically nonexistent, as Ethereum's spike has stimulated order-buying volume, waiting for negative factors to be fully digested and for the market to stabilize. You will see a brand new ETH!
Right now, my long position on Ethereum is trapped; you know what to do, right?
