The inside story behind ETH's sudden surge revealed! Whale sell-offs vs. favorable policy: A complete analysis of today's trading strategies.
Did you see ETH's surge last night? From the key level of 4514 all the way to the resistance level of 4700, the 1-hour K-line chart formed a large bullish candlestick, instantly igniting market sentiment!
1. News: Two major positive news items ignited the market
US CPI data provided a powerful assist
Last night's release of the July CPI, which was lower than expected, sent the market into a frenzy! Cooling inflation means the probability of a Fed rate cut has increased, prompting a surge in funds into risky assets, with "digital gold" like Bitcoin and ETH bearing the brunt of the impact.
Trump "forces Powell"
Trump has been putting intense pressure on Federal Reserve Chairman Powell, demanding a "September rate cut"! The combined effects of political pressure and economic data have fueled market expectations of loose liquidity, making the cryptocurrency market an easy winner. Simply put: the expectation of easing monetary policy equals an aphrodisiac for the cryptocurrency market!
II. Technical Analysis: Key Level Breakout, but Beware of "False Breakouts"
Moving averages are bullish, indicating a positive trend
Look at the colored lines in the chart: they are all supporting the candlestick pattern below the candlestick chart, a typical bullish pattern, indicating strong upward momentum. Especially after breaking through the key level of 4514, the short-term trend has turned strong.
The resistance level of 4700 is a life-or-death barrier
The price is currently stuck near the 4700 resistance level. If it breaks through with strong volume, the next target will be 4800. However, if it breaks back after a surge, it may find support at the key level of 4514. Today's focus is on the battle for 4700!
III. Personal Opinion: Short-term bullish, but don't be a "buyer."
Strategic Recommendations
For those holding positions: Reduce some profits around 4700, leaving a reserve position for a breakout.
For those interested in entering the market: Wait for a dip to the 4514-4550 range, and stop loss if it falls below the 4379 support level. Contract traders: Don't chase long positions above 4700. It's better to wait for a pullback and go long, or try to short the market to try to capitalize on a pullback.
Today's key point: If 4700 breaks, look for 4800; if it hits resistance, a pullback to 4514 is in the cards. All we retail investors need to do is "follow the trend, not the crazy" and make money we understand!
I'm Xinbi. Follow me. I'm backed by a top-tier team and only serve ambitious individuals.
