After the US election, Ethereum soared 20%, but suddenly stopped trading before $4,000. What is the mystery behind this?
The actions of the big players exposed the truth of the market. Sun Yuchen's 19,000 Ethereums were suddenly transferred to HTX, and some big players transferred 11,286 Ethereums to Binance. What do these actions mean?
Let us uncover the truth behind this drama!
Act I: The Profit-Taking Drama
Ethereum soared from the bottom to $3,446, a 20% increase. But the good times didn’t last long, as profit taking began to stir.
The most prominent one is Sun Yuchen, the founder of TRON, who transferred 19,000 ETH to HTX during the rebound. This move directly poured cold water on the market.
Act 2: The Whales' Fight
The market is playing out a game between big sharks:
On one side, there are the strong faction who hold on and refuse to sell. A big whale directly bought 18,049 ETH, which is a standard bullish signal.
On the other side are the profit-seeking parties, with two large investors transferring ETH worth $36 million to Binance. In the cryptocurrency world, large-scale transfers to exchanges often mean that positions are about to be liquidated.
Act 3: The psychological barrier of $4,000
Although Ethereum has hit a multi-month high, $4,000 is like an invisible wall that it can never break through. This is not only a number, but also a psychological defense line of the market.
The technical side is in a state of emergency:
The MACD indicator shows that the bullish force is weakening, just like a runner who begins to lose strength.
The BBP indicator also suggests that the momentum of this upward trend has begun to weaken and the main bulls may need to take a break.
Where is the critical price?
Important support: $3115. This is the lifeline of the upward trend. Once it falls below, it is likely to trigger a larger sell-off.
The last line of defense: $2953. Here is the support of the 200-day moving average, which is also the last line of defense for bulls.
If Ethereum wants to continue to rise, it must first take the $3,490 mark before it has a chance to charge towards $4,000.
What is the current battle situation?
At the moment, Ethereum is quoted at $3130.67, having fallen 4.79% in 24 hours, from a high of $3281. Although the short-term trend is still in an upward channel, various indicators are reminding that without sufficient buying support, this wave of gains is difficult to sustain.
The next trend will depend on whether Ethereum can hold the key support. If successful, it can continue to rise, but if it fails, it may usher in a significant adjustment.
The market is always a playground for the big players, and their every move often hints at the future direction. What we need to do is to understand these signals and find our own opportunities in the general trend.
The test of the bull market is not only the ups and downs of the market, but also the test of our mentality. In the face of changes in the account, we must remain rational. Next, I will announce the next coin with ten times the potential! It is better to grasp it than to guess blindly! Like + leave a message, free sharing.
