Why is the price of Ethereum one level lower than the market?

Does ETH have a chance to overtake in the next round of market?

Since August, the price of ETH has been one level lower than the market, but there are many different opinions on why the price of ETH is lower than the market. There are ideological disputes, competition from other public chains, and V God’s love affair. There are also various other opinions. I think they all make sense. Let me explain my point of view from a technical perspective.

From the underlying logic of the economy, I personally speculate that it is mainly the result of the game of multiple large funds, including hot money and a large number of retail investors who are optimistic about ETH. Because ETH has an important position in the market, the holdings of various funds are not small. In addition, after the market weakened, the inflow of funds decreased, which exacerbated this situation.

In simple terms, the original dealers did not absorb enough chips. A large number of users were influenced by traditional views and were optimistic about the potential of ETH and were unwilling to give up their chips. In addition, the ecological construction was not ideal, and the market acceptance became low, which weakened the dealers' control when pulling the market. They simply gave up the market at this stage and entered a low-level shock, using time and "unprofitable" to grind away some undetermined chips and short-term customers, and then chose the right time to act.

From the perspective of long-term cycles such as weekly K, ETH is in a period of large-scale benign retracement. The bulls are still there, and there will be its highlights from a long-term perspective. However, from the perspective of relatively small cycles such as daily K, the temporary market is not suitable for the layout of mid-term thinking. In summary, when ETH approaches 2000, you can arrange some long-term chips, and try to choose other mainstream coins for short-term.

The main force of ETH will most likely exert its strength in the next round of market. There are similar cases in other mainstream currencies in history: for example, XRP did not rise in tandem in the bull market in 2019. When Bitcoin rose, it fell all the way. However, in the bull market in 2020, when many people gave up, it directly rose by as much as 1,800%. ETH does not rule out this trend.

The above is just my personal speculation, for reference only. We will track the actual market according to specific changes.