Ethereum may experience significant fluctuations and gains, will altcoins rise accordingly?
1. The emergence of a huge chip vacuum zone
After Ethereum (ETH) experienced a sharp decline of 8.5%, its price range formed a significant chip vacuum zone between 3350 and 2150. Within this range, prices have neither formed a solid market consensus nor intensive chip exchanges, so it is easy to cause violent price fluctuations. In short, when prices fall, this range lacks effective support; when prices rise, there is almost no resistance.
2. Market value has shrunk significantly, driving costs closer to the second echelon
After more than 50 days of continuous decline, Ethereum’s market value has nearly halved. This double collapse in liquidity and currency price provides an excellent opportunity for large financial participants in the market to collect chips at a lower price, thereby increasing the concentration of chips in Ethereum and reducing the risk of future increases. selling pressure. At present, the market value of Ethereum is about 300 billion u, and the market value gap with second-tier cryptocurrencies such as BNB and SOL is gradually narrowing. We can learn from the trend of BNB last year. After the currency plummeted to 200, it achieved a feat of soaring to 721 in the first half of this year. This fluctuation range provides a reference for the future trend of Ethereum.
3. Summary
Projects with strong financial support and extensive market participation often show strong potential and willingness to reverse fluctuations after experiencing fear, uncertainty and doubt (FUD). The current situation of Ethereum is highly similar to the situation last year when BNB fell to 200. Therefore, we have every reason to believe that with the breakthrough of Bitcoin (BTC), Ethereum is very likely to usher in a wave of extremely large price fluctuations and drive the activity of the entire cryptocurrency market, including the development of altcoins.
