ETH breaks the $4000 mark, which should be a moment of jubilation for the cryptocurrency market, yet the market atmosphere is unusually bleak — long investors are hesitant to add positions, and short investors are reluctant to hold on firmly, while altcoins are generally "dormant." What secrets are hidden in this?
This time, ETH's rise, from a technical indicator perspective, is quite strong: the weekly MACD crosses above the 0 axis, and the daily OBV shows a steady inflow of funds, indicating an overall positive trend. However, the market seems to have hit the "pause button," with low trading volumes and a lack of enthusiasm among ordinary investors. The reasons are not hard to find: ETH has repeatedly attempted to break through $4000 but failed to hold, leading to investor concerns; the signs of major players "manipulating" the market are more pronounced, as they shake out positions through volatility; and a significant amount of funds has been withdrawn from altcoins, which have shown poor performance and dampened overall market sentiment.
Why are altcoins "staying put"? Normally, an ETH rise would drive them up as well, but this time the situation is different. Funds are pouring into ETH, resulting in a lack of liquidity for altcoins; Bitcoin's weak performance, coupled with regulatory uncertainties, makes institutional funds reluctant to enter the market easily. However, from a historical perspective, when ETH solidifies at key positions, altcoins often see several-fold increases. Will history repeat itself this time?
In the coming weeks, can ETH lead the market into a "frenzy period"? This hinges on two aspects: first, whether ETH can maintain its footing at the $4000 level with increasing trading volume; second, whether Bitcoin can stabilize and avoid dragging the market down. If both conditions are met, the "feast" for altcoins may soon begin.
