Today, let's talk about the Ethereum market. Ethereum reached a high point of 4800 USD on August 13, while also reaching a historical peak, which is a consensus pressure point.
The pressure here mostly doesn't come from the market, but from people's minds.
With Ethereum at 4800, those who bought earlier will take profits and step back to observe. Those who are leveraging will see pressure here and will short Ethereum.
There is also a part of people who previously missed out on Ethereum and finally couldn't resist entering the market above 4000+, some have spot, and there are those like James Wynn (a whale who previously shorted Ethereum heavily and got burned), now changing their mindset to long Ethereum.
So at this position, it gives the main force enough reasons to adjust and fluctuate. First: Those who are making a profit are hesitant and will decisively leave when they see a pullback. Second: Those who chase high prices will be trapped as soon as they enter, making it easier for them to give up. Third: Previously, they blew up short positions, and now they are turning back to blow up long positions.
Having understood the logic of the main force, let's also look at the market to see where Ethereum will go next.
Currently, on the daily chart, there are no signs of a stop to the decline, and yesterday closed with a medium bearish candle, showing no signs of weakening in bearish strength, indicating that the downtrend has not yet ended.
The lower level of 3800 USD is the last oscillation zone and an important support level. You should closely monitor whether there are signs of a stop to the decline here. However, 3800 USD may also likely be a false signal that breaks slightly and then recovers.
As long as it breaks slightly, the market participants won't be able to hold on, because once they feel it has broken 3800, where will it go below? The fear in their hearts will slowly overcome their rationality, and then bizarre thoughts will arise, ultimately leading to poor decisions.
The small corrections in Ethereum do not affect its strong larger trend. If you can't understand the market, you will miss out on the next wave of Ethereum under others' persuasion.
Illusions can always confuse 90% of the vast majority of speculators, but they cannot confuse the few who genuinely seek the essence and firmly believe in value.
The financial market is never short of smart people, but those who keep losing money are precisely because they are too clever, always able to guess some market trends, to the point of showing off their intelligence, forgetting to respect the market and their true abilities.
Like the recently popular 'A Mortal's Journey to Immortality', the masters' advice to Han Li: Always remember your true nature, you are just a mortal, and you must always be cautious and respectful.
This is the survival wisdom of the financial market.
One tree does not make a forest, and a lone sail does not travel far! In this circle, if you don't have a good network, and no firsthand information from the crypto world, then I suggest you pay attention to Xiaoxun, who can help you get on board for free. Welcome to join us!!!$ETH
