ETH exploded! Is the big player accumulating or escaping the top? This is really important!
The chart shows the change in ETH supply on the exchange. On the right side, the blue line indicates that the supply of ETH has indeed decreased a little. This suggests that someone is buying ETH on the exchange and then withdrawing it to their cold wallet. A decrease in exchange supply is a buying signal.
#ETH突破2500
However, to be objective, this buying volume is too small. Look at the left side during the bear market when big players were frantically accumulating, and the exchange supply was nearly halved. This is what big players do when hoarding coins. Currently, the net buying volume is not too much; the sharp rise in ETH is more due to what we discussed the day before yesterday, where futures short positions were liquidated, and large capital is creating a short squeeze to clear out shorts.
#策略交易
When shorts are liquidated, they need to buy back the coins they shorted, which will drive up the price. The rising price will cause more shorts to be liquidated, further pushing up the price, resulting in a death spiral for the shorts, which is a short squeeze, causing a very rapid increase. This is not due to rapid buying; very few people would irrationally chase after prices that have risen by 30%. Therefore, it is more caused by the short squeeze, and on-chain data also supports this view.
Thus, my view on ETH is a flow; do everything possible to squeeze the shorts, and once the shorts are all squeezed out, we might see a significant correction.
However, one situation is that after the sharp rise in ETH, it might evoke retail investors' emotions, leading to a genuine buying volume aside from the short squeeze. This would be long-term and healthy. Currently, there is some, but really not much. However, I will continue to monitor ETH's on-chain performance, so remember to follow me~
