In-depth Analysis of ETH: Panic Breaks Below 3700, Yet I See the Golden Pit Before Historical Highs!
News: Last night, ETH suddenly broke the critical support of 3700 USD, and the market exploded—community cries filled the air, with "crash theories" and "zeroing out" everywhere, and the panic sentiment index plummeted.
But the data doesn’t lie: On-chain whale addresses are continuously accumulating while the price is low, and the exchange ETH reserves dropped sharply by 3.2% in 24 hours—this is not selling off, but rather smart money quietly picking up chips!
1. Market sentiment has plunged, but the root cause lies in human nature
When the price broke below 3700, I witnessed an absurd scene:
Crazy when rising: Just two days ago, when it surged to 3800, the screen was filled with "ETH 4000 is not a dream," leverage was fully opened, fearing to miss out on getting rich.
Collapsed when falling: Now that 3700 has broken, immediately it’s a “countdown to zero,” cutting losses and trampling faster than anyone else.
What’s the truth? The market hasn't changed at all; only human feelings have changed—the position management depends entirely on mood, and risk control discipline is practically non-existent; this is the root of the losses!
2. Current strategy: See opportunities amidst panic
If you are a holder:
Cutting losses now is equivalent to handing bloody chips to whales.
As long as the position is reasonable, staying calm is safer than making hasty moves.
If you are on the sidelines:
There is a clear support in the 3600-3650 range.
You can build positions in batches, adding once for every 50 USD drop, and make sure to keep 30% cash to guard against extreme volatility.
Avoid going all-in! ETH often tests the bottom with multiple false breaks.
3. Future prediction: Historical highs are on the way
I am bullish on ETH for the core logic:
The leading altcoin effect: Data from the past 5 years proves that after ETH breaks its historical high, mainstream altcoins average over 120% increase within a month.
The eve of ecological explosion: After the Cancun upgrade, L2 fees dropped by 60%, and new applications on-chain are surging.
Institutional bets deepening: BlackRock’s ETH spot ETF has not been approved yet, but they have increased their ETH futures positions to 1.8 billion USD.
Key time window: In late August, ETH will test the strong resistance at 4000 USD; once it breaks through with volume, it will initiate an accelerated rally!
Shenlong Trend Practical Advice
Short-term: Add to positions below 3650 for every 50 USD drop, reduce positions to make a swing when rebounding to 3850.
Medium to long-term: Stop-loss below 3500, add to positions above 3950, target price 4500+
Ultimate reminder: Keep enough bullets! If the Fed turns to rate cuts in September, ETH will soar with rocket fuel.
Dare to think and act? Following Shenlong Trend is your best choice!