The crypto world is like a martial arts world; this wave of ETH has three major secrets!
'Market is born in despair, rises in hesitation, and dies in madness.' This old saying in the crypto world is vividly reflected in today's ETH performance. At 4 AM, while most people were still debating whether to stop-loss during a minor fluctuation, this rebound starting from $2979 had quietly reached the historical level of $3674.
News: Institutions bottom-fishing and policy tailwinds
However, the warnings from the technical analysts were forcefully 'slapped' by two major good news. First, SharpLink Gaming, a 'micro-strategy' in the crypto world, once again bought 4904 ETH this morning, accumulating a total of 358,000 ETH at an average price of $2825, with floating profits reaching $260 million. More significantly, the U.S. House of Representatives just passed three cryptocurrency bills, directly igniting market risk appetite, with ETH surging 3.96% in a day, breaking through the $3600 resistance level.
Technical analysis: Bull trap or air support?
The 4-hour K-line chart shows that ETH's rising channel resembles a fully drawn bow. The price formed a 'finger pointing the way' pattern at $3500, with support at $2979 being tested three times without breaking. However, there are hidden concerns in the volume-price relationship: although the trading volume yesterday reached $5.996 billion, the volume at the new price high was only 80% of the previous high, a typical 'price increase with volume decrease' divergence. More concerning is that the MACD histogram has shortened for five consecutive bars, KDJ formed a golden cross in the overbought zone, and the RSI broke 70 entering the warning zone, resembling the technical pattern before last May's crash.
There’s a detail worth pondering: Data from CoinWorld shows that the liquidation amount in the last 24 hours reached $54.78 billion, with a long-short ratio of 1.2:1, and short covering pressure hitting a new high for the month. What does this indicate? While retail investors are still operating with a 'stop-loss in minor fluctuations' mindset, institutions have already voted with real money in this wave, which is likely to evolve into a classic 'institutional short squeeze'.
Operational strategy: Left-side trading or right-side follow-up?
Personal opinion: In the short term, look for a pullback; in the medium term, look for a breakout. Aggressive traders can refer to the 'three buys and three sells' rule. If you are unclear about the actual price levels for effective breakouts, you can follow me.
But it must be reminded: The Ethereum ACDE meeting at 14:00 UTC tonight is a key variable. If the EIP7907 proposal is removed, it may trigger a short-term profit exit; if it is vetoed, it may impact the $4000 threshold.
To put it frankly: The crypto world has never been an ATM for 'stop-loss in a volatile market', but a printing machine for 'holding positions in a trending market'. Retail investors who rush in due to minor fluctuations will eventually lose their bullets to the institutions. Should you continue to hold onto your ETH or take profits? Feel free to leave your thoughts in the comments for discussion.
Still the same saying: The market never lacks opportunities; what’s missing is the eye to see through the tricks. Follow me, top-tier team support, serving only the ambitious madmen.
