Why did Ethereum fall sharply today? After reading this, you will understand that $4,000 is within reach in the future!
Ethereum fell nearly 4% today and is currently trading at $3,354.5. The overall market value has also fallen by 3.19%. So, what caused this wave of adjustments? The "death cross" on the four-hour chart gave a clear signal, and the price was strongly suppressed and failed to break through $3,524. But it cannot be ignored that despite the greedy market sentiment, ETH's open short ratio is as high as 54.17%, which shows that most traders are pessimistic about the market outlook.
However, according to CryptoQuant data, Ethereum's exchange reserves are declining, which means that investors are transferring ETH to cold wallets, indicating that confidence is gradually increasing. The inflow of funds from ETFs is also eye-catching. The inflow of funds on December 24 was only $53.6 million, but behind the inflow of large funds such as ETHA, ETHW, and FETH, there are more market opportunities.
Yes, the current decline may only be a temporary adjustment. As confidence recovers, ETH may usher in a bigger rebound. Can Ethereum break through $4,000? Let's wait and see. Smart investors know that the market will never be one-way, and it is these adjustments that make opportunities more valuable.
Don't be blinded by short-term fluctuations. Brother Tang will teach you to lock your goals, take every step carefully, and witness the explosion of wealth with a smile! Follow Brother Tang and he will take you from confusion to freedom!
