Deep Observation of the Cryptocurrency Circle: Capital Games and Future Expectations in Ethereum Fluctuations
Recently, the Ethereum market is undergoing a subtle capital narrative.
From a technical perspective, the 30-minute candlestick chart frequently shows long lower shadows and shrinking downward trends. This 'falling without breaking' trend often suggests that major funds are accumulating chips at low levels.
Combining the main fund monitoring data from the Mythical Sentinel system, the abnormal volume occurring between August 12 and 14 coincides with the public information regarding adjustments in holdings of BlackRock's ETF products—when the market focuses on the 'institutional selling' appearance, the real capital flow might be performing a 'brightly lit path while secretly using another route' act.
The cruelty of this capital game lies in the fact that retail investors are often caught up in short-term fluctuations.
As the Federal Reserve's interest rate cut expectations gradually become clearer in September, the market, however, falls into panic selling ahead of time. This 'last drop before the expectation is fulfilled' is a classic washout technique.
It is worth noting that Trump's recent public statements about cryptocurrencies form a subtle echo with the hawkish stance of Federal Reserve officials. This 'combination punch' at the policy level seems to be building momentum for the subsequent market trends—just like the script played out in the early days of the pandemic in 2020, where the market initially fell before rising.
The resonance between technical and fundamental aspects is becoming evident: the deflationary effect brought by Ethereum network upgrades is continuously fermenting, institutional investors are gradually deepening their layout through ETF channels, and the liquidity to be released after the interest rate cut period may ignite a new round of narrative speculation.
At this current point, we might as well take a more macro perspective: at the intersection of traditional finance and the crypto world, every policy fluctuation and capital operation is writing a new wealth myth.
For long-term holders who firmly believe in blockchain value, the current fluctuations may just be the 'darkness before the dawn.' When the Federal Reserve finally presses the interest rate cut button, and when policymakers and market leaders complete their tacit cooperation, the day Ethereum breaks through the $5000 mark may come sooner than most people expect. This capital game has never ceased, and the true winners are always those who can see through the narrative fog.
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