$ETH Can it continue to rise to 4,000?! 😃 Opportunities exist, but it is currently more likely to undergo a slight adjustment before making a final sprint!
This week, @Ethereum has shown very strong upward momentum, somewhat similar to the rise from 1,700 to 2,500 in May this year, especially in terms of data performance...
1️⃣ Concentration of positions: There is a slow downward trend in bullish concentration. In May, there were three waves of increasing bullish positions followed by a slow decline, and the peak of the bullish trend appeared at the third peak of bullish position concentration (which was also the lowest). There was a divergence in the data where prices rose while positions declined.
2️⃣ Market sentiment: During the rapid rise in May, market sentiment showed significantly optimistic signals, and this week also reflects high optimism, indicating that retail investors are starting to actively buy long. (Starting FOMO 😁)
3️⃣ Whale alert: During the last and this rapid rise phase, whale activity shifted from early active participation to continuous profit-taking, which is a typical sign of gradual selling after reaching a certain level of increase.
4️⃣ Squeeze momentum: Both times are at a relatively high bullish momentum level, indicating that the mid-term bullish trend has reached a peak stage. Next, it may either enter the late-stage peak distribution period or require some bullish trend correction to continue maintaining the trend.
5️⃣ Bull-bear strength: The characteristics of market buy and sell orders are also very similar, with significant buying occurring during the rise, followed by an increase in selling.
6️⃣ Liquidation: What is different about this wave is the occurrence of large leveraged long positions being liquidated during the rise, which confirms the FOMO phenomenon in the market, with traders eagerly trying to gamble on long positions...
💡 In summary, the rapid rise of $ETH in July shows a certain degree of similarity in contract market data performance to the one in May, both driven by whales laying out long positions followed by explosive rises combined with retail traders' FOMO, leading to continuous profit-taking in batches.
If we follow the trend performance of May, after two waves of bullish position peaks, #ETH will start to undergo range consolidation, followed by a third rise in bullish positions and price increase. At that time, we need to observe whether a situation similar to the last one occurs again...
😌🤠
Data source: blave.org
