NVIDIA's earnings unexpectedly became the trigger for a 150-point drop in ETH within 15 minutes!
The data center business surged by 760%, which pushed ETH to $4650. However, the news of a 66% drop in revenue from crypto mining chips (CMP) triggered market panic. Coupled with a massive $650 million long position stop-loss pile due to a contract rate as high as 0.25% per day, and a whale precisely selling 42,000 ETH at $4640 to open a short position, it ultimately resulted in a dual killing situation for both bulls and bears.
Technical indicators such as MACD divergence at the top and RSI near the cliff of overbought have long signaled risks. With the current weekly support level of $4500 breached, one must be cautious of the secondary transmission effect of NVIDIA's stock price fluctuations on the crypto market at the U.S. stock market open. Retail investors should immediately reduce leverage, pay attention to on-chain signals of 50,000+ ETH transfers out, and the breakout situation of the 4-hour EMA20, while also allocating put options or RWA assets to hedge against risks.
The market changes every day; don’t let your mindset collapse too tightly. If you often feel like you're a step behind or are disturbed by market noise, feel free to reach out for a chat. $ETH
