Mad Cow is Coming, Why Are So Many People Not Optimistic About Ethereum?
I won't elaborate much on the value and role of ETH; this article mainly discusses the psychology of institutions and project parties.
ETH has been hovering around 2500 for more than two months, which may be because too many people bought the dip near 3,000 dollars, believing it would rise to 4,000 dollars. This led to a situation where the vehicle (market) became too heavy. When the chips are overly distributed among retail investors, it's highly likely that the project won't continue to rise. Its next step is to wash out most of the chips held by the majority. Looking at the current situation, ETH has been very successful in this regard, and now 90% of people in the market are not optimistic about ETH!
With the prolonged sideways movement, those who wanted to enter and exit quickly have sold their chips, while long-term holders see Bitcoin nearing seventy thousand, and Ethereum still at 2500, prompting many to wonder if their judgment and choices were wrong. In a constant state of fear and anxiety, many sold their chips. After surveying 100 fans about their average ETH holdings, I found that their average cost basis for ETH is around 3,000 dollars.
Additionally, this year the real economy has become increasingly difficult, with some business owners experiencing cash flow issues, leading many long-term investors to withdraw their capital from the crypto space. With this backdrop, it has become much easier for institutions to accumulate chips. The more people are pessimistic about ETH, the more successful the institutions' operations become. When a large number of chips are collected, very few people remain on the ETH vehicle. With the support of a crazy bull market, ETH can easily break through the previous high to reach 5,000 dollars!
Of course, I believe the big washout is not yet over; many believers in ETH are still holding strong. If one day the believers' faith in ETH starts to wane, I believe ETH will soon begin a violent rise!
