Big G is here! Brothers, today let's talk about the future market of ETH, straight to the point.
First, let's look at the current situation.
As of May 16, the price of ETH has been hovering between 2530-2566 USD, slightly retreating after a peak of 2600 a few days ago, but overall, it has stabilized around the key support level of 2500. In the past week, ETH has risen by over 40%, significantly outperforming Bitcoin. Institutional funds are aggressively increasing their positions, with BlackRock's ETF alone purchasing 27,000 ETH (about 70 million USD) in a single day. These large holders are really getting involved.
Positive Factors
Institutions are buying: The US Ethereum ETF has seen net inflows for 20 consecutive days, with BlackRock hoarding 620,000 BTC and nearly 1 million ETH. This situation is reminiscent of the rhythm before the bull market in 2021.
Ecosystem Explosion: Recently, the DeFi locked value of Ethereum has returned to 100 billion USD, Layer 2 transaction fees have significantly dropped, and dog projects are launching wildly on platforms like Ray, with on-chain activity reaching new heights.
Technical Support: Although the short-term MACD shows pullback pressure, the weekly chart has closed with a large bullish candle. After stabilizing above 2500, the next target is initially 2700, and once broken, it may even reach 3000.
Risk Warning
Short-term Overheating: The market greed index has soared to 70, and if coins like SOL crash, it may lead to negative sentiment.
Macroeconomic Variables: The Federal Reserve may cut interest rates in September, and before that, large funds might withdraw while pushing prices up. The Bitcoin conference on May 27 could be a local peak.
Operation Suggestions
Spot Traders: You can gradually buy the dip around 2500, stop loss below 2430, and consider taking profits in batches above 2700.
Contract Players: Pay attention to the oscillation range of 2560-2600 during the day. If it breaks 2600, go long; if it drops below 2500, go short, but keep leverage no more than 2x.
Just a few final words.
The current trend for ETH isn't over yet, but don't rush in blindly! Focus on the support at 2500 and resistance at 2700. Before the interest rate cut in September, there’s a high probability of another peak. Remember, in a bull market, pullbacks are opportunities given by your parents to get on board, but you must set stop losses well to avoid giving back your profits!$ETH #ETH突破2500
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