Today, the hot topics in the crypto space are once again occupied by two events. One is the holding of the White House Crypto Summit, yet this highly anticipated meeting turned out to be a damp squib, ultimately failing to produce any substantial positive news, leaving the market disappointed and significantly impacting the overall market. The second is the live stream of the crypto summit, which was only open for 20 minutes, with subsequent content encrypted, leaving the observing investors confused and lamenting that this crypto summit truly lives up to its name.
Faced with various speculations and uncertainties in the market, we might as well calm down and analyze rationally. Nowadays, the biggest focus of controversy in the crypto space is undoubtedly Ethereum (ETH). Everyone is discussing how much further it can drop, as Ethereum holds a significant position in the cryptocurrency market and is regarded as the leader among 'altcoins.' Its trend often determines the market for other smaller coins. However, those who are seasoned in the crypto circle know that predicting prices is the easiest way to get it wrong. Why? Because once a target price is set in mind, it often leads to a situation where: when the price has yet to reach expectations, one hesitates to buy; and when the price actually drops to the expected level, fear causes indecision, ultimately leading to watching the market rebound with regret.
In trading, the most taboo thing is excessive price prediction. Once expectations are set, investors often fall into a stalemate: they don't operate until the expected price is reached, and once the price falls below expectations, they are even more hesitant to act. This mentality can easily lead to missing out on the market and missing excellent investment opportunities.
Looking back at Ethereum's historical trend, we can see that after hitting the bottom in June 2022, it consolidated at the bottom for a full 504 days before finally breaking through. After that, each pullback did not break below the key support level. This indicates that the support strength of the more than 500 days of dense trading area formed at the bottom is very strong. It is important to note that the formation of a bottom is the result of the market makers' long-term layout, having invested significant funds and time, meaning the cost is certainly not low. The market makers' goal is naturally to make a profit; if they easily offload at $4000, it would be a huge loss.
Therefore, this current wave of decline is likely a 'washing' tactic by the market makers. In the previous bull market, Ethereum performed exceptionally well, attracting numerous large investors to follow suit. Now, the market makers need to 'wash' to filter out the investors who truly resonate with them. Those who cannot hold their positions during volatility are likely to be scared away, while those who remain are the 'loyal fans' who can keep up with the market makers' rhythm. At least, these remaining investors will not sell off during the market makers' price increases, thereby forming a market consensus.
In a sense, Ethereum's position in the cryptocurrency market is akin to the Windows operating system on our computers. With an operating system, various applications (altcoins) can run smoothly. Therefore, although Ethereum's current decline appears fierce, in the long run, the tougher the market makers wash, the greater the potential for future explosive growth.
As investors, we should not be intimidated by short-term fluctuations, but rather view the market rationally. Although the market makers' washing behavior may seem cruel, it is also a way to filter investors in the market. Only those who can stick to their judgment and are not swayed by short-term fluctuations can achieve success amidst the grand waves of the crypto space.
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