The main reasons for the drop of $ETH

The recent drop in ETH prices is mainly due to overall market risk aversion, leveraged liquidations, and technical selling factors:

Overall market correction: The cryptocurrency market has experienced a certain degree of decline recently.

Leverage liquidation pressure: Data shows that ETH faced significant liquidation pressure during the price drop, especially when approaching the $4,400 mark, where the liquidation amount was huge. The closing of high-leverage positions exacerbates the speed of price decline.

Technical support lost: From a technical analysis perspective, ETH broke below key support levels such as $4,450, which may have triggered some programmatic selling and technical stop-loss orders, further pushing the price down.

Next, you can pay attention to the following points:

Key support levels: It is crucial to closely monitor whether ETH can find support and stabilize near Fibonacci retracement levels around $4,265 or even $4,200.

Macroeconomic environment and sentiment: Global macroeconomic events (such as Federal Reserve policy trends), regulatory news, and the overall market's "fear and greed index" (which previously entered the "fear" zone) will continue to impact the cryptocurrency market.

Capital flow: Pay attention to the inflow/outflow of funds in products like Bitcoin and Ethereum ETFs, as this can serve as a barometer for large capital sentiment.

Keep an eye on Mu Bai ETH not getting lost, and brothers who make money remember to give me a shout-out. The long position in Bitcoin should still hold with the first target at 113000, remember.