Focus on ETH, only dare to buy the dip in altcoins when Ethereum drops to the right level

Both Bitcoin and Ethereum have seen significant declines, with altcoins being affected even more, many have already dropped back to the starting point on May 7, or even lower. It can be said that altcoins may be close to the bottom of this round.

Currently, Bitcoin's market control is very strong, and if it rises to $150,000 one day, it wouldn't be surprising. Ethereum faces even greater pressure because there are too many retail investors and high leverage, making upward breakthroughs more difficult.

At present, Bitcoin is more like a "barometer," paving the way for altcoins to accumulate. From the 4-hour perspective on Ethereum, after the rise on the 16th, a lot of chasing emotions were triggered, and many people rushed to increase their positions, thinking the bull market was coming, but often they buy and end up getting trapped, selling at a loss and then watching the price rebound. This kind of back-and-forth is the norm in the current market.

We have previously stated that ETH is currently operating within a range, roughly around 2700-2800, and many people want to sell as soon as the price returns to this level. Thus, the market will not easily allow you to operate comfortably.

When the price rebounds, many people fear "missing the sell" and rush in, only to end up crashing the market. In this wave of movement, the upper shadow is long, indicating that funds are hesitant to chase high prices, and just when the sentiment rises, the market reverses. This is a typical harvesting.

We have previously analyzed two types of movements:

1. Consolidation type: moving back and forth in the range of 2650-2450, wearing down the patience of short-term players, attracting long-term funds to enter;

2. Breakout type: dropping to 2350 or 2250, more decisive but with the same logic, also to wash out cheap chips and attract long-term entry.

Currently, it seems that ETH is in the first consolidation movement, not yet breaking down. If it subsequently drops to 2350 or even 2250, it may actually be more favorable for later challenges above 3000.

So focus on ETH, and consider buying the dip in altcoins when it drops to around 2200-2300.