June 4, 2024 Grandpa checks in
Ether reaches 3800 again. There is a phenomenon in the rise and fall of the price in circle B, that is, the strong always get stronger. This effect is more significant especially within a period of time. For example, the recent price of Ethereum went from less than 3,000 to 3,800 after hitting bottom. It also performed quite strongly during sideways trading. This is a sign that there has been no retreat after the capital injection. In addition, after a round of rise and retracement, we will find that it is often easier for those coins that have skyrocketed to rise again. The configured DeFi sectors ENS, AR, etc., fall into this typical category.
The rise and fall of prices does not directly involve the change of value, but is more of a capital game. The reason why those old coins that no one cares about have been sideways or even falling for a long time is that there is no main capital injection and no hot money to manipulate them. The former is that the value is not recognized, and the latter is that no one buys the popularity. Why is it best to buy Ethereum when you are confused, because the value and popularity have been verified by the market for a long time. For example, the recently skyrocketing NOT, from my point of view, currently only has the value of popularity. I have said many times before how to play this kind of coin.
In terms of the market, whether Ethereum can break through 4000 and set a new high may be the most concerned issue. This should be considered in two steps. First, look at Bitcoin. If Bitcoin reaches a new high, then it is undoubtedly only a matter of time before Ethereum reaches a new high. However, I am a little worried about Bitcoin's short-term new high. However, even if Bitcoin cannot reach a new high, the probability of Ethereum testing 4000 is not low. This wave of sideways trading is basically a relay sideways trading. Whether it can break through 4000 in the future is questionable, and trying to break through is a high probability event.
However, in terms of specific operations, I chose not to continue to increase my positions, especially in the mainstream or copycat configurations. If there is an increase, I will sell or change positions. Of course, this process cannot avoid selling at a high price. This is because I regard the current overall market as "high". Even if Bitcoin and Ethereum still have the potential to double, the price and risks inherent in the copycat are much greater than those of the low-volatility market. The purpose of doing this is to obtain better chips in the potential decline. If the chip price is already advantageous enough, you can also wait patiently for the arrival of the big bull. I do this with some positions.
Thank you for your attention and likes.