Today, I woke up to two heavy news items hitting me directly! One is the US government giving 'sugar' to the crypto world, and the other is the ETH price chart quietly telling me: a trend change might really be coming.
News: The US CFTC has sent 'institution-grade fuel'
Did you see that news screenshot from this morning? The US Commodity Futures Trading Commission has officially launched a 'digital asset pilot program', approving Ethereum, Bitcoin, and USDC to be used as collateral in the derivatives market.
What does this mean? In simple terms: Previously, institutions used to play with derivatives, and the collateral was mostly stocks and government bonds; now cryptocurrencies like Ethereum and Bitcoin can also be used as 'deposits'!
Especially for Ethereum, this time it has become one of the first selected along with Bitcoin and USDC, its status is self-evident. This is equivalent to opening a door for large funds, allowing institutions to more conveniently use ETH for leverage and conduct more financial operations. In the long run, this is a solid expectation of incremental funds, liquidity will be stronger, and the price foundation will be more stable.
Technical aspect: The ETH one-hour chart is currently 'gathering strength and preparing for a big move.'
Looking at the second 1-hour chart again, the information is quite sufficient:
The price is currently around $3108, just above the 'watershed' at 3106.6, and the bulls and bears are battling it out here.
The upward resistance is very clear: first resistance at 3139, second resistance at 3230. Downward support: the middle track of the Bollinger Bands around 3070 is the first line of defense, followed by 2921.
MACD shows signs of contraction, and the Bollinger Bands are narrowing, which is a typical oscillating consolidation pattern. To put it simply: the market hasn't turned bad; it’s just waiting for a directional breakthrough.
My view: the positive news has not fully fermented yet, and the technical aspect has already taken an attacking posture.
The news is a long-term positive, but the market won't immediately jump to the target. Currently, the price is oscillating at a key level, which is precisely a typical combination of 'positive news + technical consolidation.'
I think the main players might be waiting for an opportunity: if they stabilize above 3139, they will likely test the resistance at 3230. After all, the CFTC news has provided confidence for the medium to long term, as long as the market doesn't lag behind, ETH can easily be ignited.
What should retail investors do?
In this kind of market, understanding the weight of information is a long-term benefit, not a short-term speculation. Recognize your position - it's not the peak yet, but also not the lowest point; it's oscillating in the middle position, and being patient for opportunities is more important than making hasty moves. Plan your trades: where are the support levels, where are the resistance levels, what to do if it goes up, and what to do if it goes down, have a plan in mind.
The market always has opportunities; the key is to operate calmly. Baiyue will continue to help everyone monitor on-chain dynamics, and together we will steadily move forward! Follow Baiyue and participate in every attack of Baiyue's villagers! Baiyue will announce specific entry times and real-time information in the village every day!
