ETH's recent trend has clearly weakened, and losing the 4000 mark so quickly is indeed a bit surprising. With several legendary traders gradually liquidating their positions, market sentiment is further pressured, and the short-term market is likely to explore downwards.
The integer thresholds for each coin have always been a battleground between bulls and bears; it's hard to go up and painful to come down. Currently, the key is whether ETH can stabilize around the 4000 mark, but to be honest, I personally feel that sustaining this position is not easy.
From the perspective of the moving average system, ETH has already fallen below the 60-day line and is now heading towards the 120-day line. What's more concerning is that there has been hardly any decent rebound during the decline, and there are no signs of buyers stepping in, while the bearish momentum has not yet subsided.
In this round of adjustment, ETH may further drop to around 3600, which is the position of the 120-day moving average, conveniently cleaning out high-leverage positions like that of Brother Majie. In simple terms, this is a deep washout; the more thorough the washout, the more intense the upcoming bull market cycle in our crypto space will be.
As for operations, for those who are trapped, either supplement the margin for the contract positions or decisively stop-loss when there’s a rebound; for those holding spot positions, I choose to hold on. After the storm, it will still be a bull market.
