Ethereum's Pullback: An Opportunity or a Trap?
Over the past 24 hours, ETH has fallen steadily after a failed attempt to break higher, falling below $4,300. Based on its previous high, the maximum drop has exceeded 10%, and the hourly K-line chart has even formed a volatile downward trend. Many are starting to panic: Should we sell?
On the contrary, I believe that the more such a decline occurs, the more calm we should be. A one-sided decline often finds support before a strong rebound. With $4,200 already showing clear support, a short-term period of consolidation is likely.
The external environment is positive. The Nasdaq continues to hit new highs, and the A-share market has also reached 3,700 points. This suggests that ETH's decline isn't a macroeconomic crash, but rather a rational correction after its previous surge. More importantly, the selling pressure from ETH unlocking will have a short-term impact, but this is also the process of capital turnover.
The bulls and bears in the market are very clear:
Bulls: Wall Street investors in the US stock market are frantically investing in ETH, with the same goal as they did with BTC back then! To control the market and gain pricing power.
Air Force: These are mainly whales and large investors in the market, taking profits at highs and dumping stocks to replace their positions.
This pattern is new to Ethereum. The last time a similar game played out, the protagonist was BTC, and the outcome was as we all saw: MicroStrategy triumphed, pushing Bitcoin's market capitalization directly to trillions.
This reminds me of the story of BNB:
Back then, when it was sideways at $20-30, almost no one was optimistic. I bought a batch at the bottom at $10, intending to use it for new IPOs. However, after being wiped out by the volatility, BNB skyrocketed dozens of times in a matter of weeks, reaching a high of nearly $700! At that moment, I first deeply felt the power of capital.
Later, BTC also experienced a capital-driven rally, and its market capitalization continued to double to trillions. Now, ETH may have the opportunity to repeat this capital-driven myth for the third time.
So, for me, this pullback feels more like a "baptism before the big money rush."
While others are panicking and exiting the market, Wall Street is quietly buying in. The future breakout point may be brewing here.
ETH isn't just a short-term story; it's a super narrative for the next decade.
Anyone who dares to weather this market correction may witness a legendary fortune that doubles in a matter of weeks and then skyrockets over a decade.
