The market has been a bit frustrating these past two days, with Ethereum dropping from 3100 to 2718 and then rebounding back to 3100. I think many people lost money in this V-shaped reversal, but I also believe that this has given us a great opportunity to short at a high position.
The reasons for this rebound market are two:
One is that the Ethereum fusaka upgrade on December 3rd attracted increased funds for on-chain purchases of Ethereum spot, driving the rise of Bitcoin and other cryptocurrency markets.
Second, last night Trump hinted that Kevin Hassett, who supports cryptocurrency and advocates for more and faster interest rate cuts, will replace Powell as the Chairman of the Federal Reserve.
But after the market completes these two positive factors, it will face the negative impact after all the good news is out. The US dollar liquidity is still insufficient, and the negative impact of Japan's interest rate hike in December remains. Major institutions like MicroStrategy are struggling with funds, and a butterfly effect triggers a storm in the crypto market.
The probability of a black storm is not small.
If a wave of selling triggers major institutions like MicroStrategy to collapse, we may see Ethereum starting with a 1. At that time, the market will be full of wailing, corpses everywhere, a crypto winter, and the sound of Ethereum collapsing will be incessant.
At that time, friends should not be pessimistic; it was our opportunity to buy at the bottom.
