Everyone, is the crypto circle panicking recently? The price of ETH is constantly fluctuating, while the whale Trend Research is officially announcing an additional $1 billion investment despite a floating loss of $140 million! This move has left many retail investors confused: should they buy in or run away quickly? Don't panic! As an analyst who has been deeply involved in the crypto space for many years, today I will provide you with 3 solid survival guidelines based on this hot topic, to help you stay grounded in a volatile market and not get liquidated!
Let me first outline the context of the events: Trend Research has accumulated 580,000 ETH, with a cost price of about $3,208, currently facing a floating loss of $140 million. They then announced an additional $1 billion to increase their holdings of ETH. As soon as this news broke, two voices emerged in the market: one felt that the whales are increasing their positions and should follow suit; the other worried that the whales are 'luring' to offload their assets. In fact, both thoughts are too extreme; what we retail investors need to do is rational analysis, not blindly following trends.
The first survival guide: Distinguish between "short-term fluctuations" and "long-term trends" and do not be influenced by emotions. Many retail investors get cut down because they are too easily affected by short-term price fluctuations. They panic and sell when they see prices drop, and blindly chase high when they see prices rise. From the operations of Trend Research, it is clear that they are laying out long-term trends, not pursuing short-term gains. The current price fluctuations of ETH are just normal market adjustments, and Ethereum's long-term trend is still upward, as its ecological advantages and technological upgrades are continuously advancing. Therefore, we retail investors need to learn to step out of short-term emotions and view the market from a long-term perspective, so we can make correct judgments.
The second survival guide: Do not blindly follow the whales' operations; layout according to your own risk tolerance. Many retail investors see whales increasing their holdings and want to follow their lead, but they overlook a key issue: the capital size and risk tolerance of whales are on a completely different level than ordinary people. Trend Research can withstand a floating loss of 140 million USD, but can we ordinary people? The answer is obviously no. Therefore, we cannot blindly follow whales to buy, but should develop an investment plan suitable for ourselves based on our financial situation and risk tolerance. For example, if your funds are limited and your risk tolerance is low, you can make small positions without investing all your money; if you have ample funds and high risk tolerance, you can appropriately increase your position, but be sure to hedge against risks.
The third survival guide: Focus on core indicators rather than being led by news. In the crypto market, the impact of news is often short-term; what truly determines a project's long-term value are the core indicators. For ETH, what core indicators should we focus on? First are ecological indicators, such as DeFi locked volume, NFT trading volume, Layer 2 activity, etc.; these indicators can reflect the development of the Ethereum ecosystem. Next are technical indicators, such as network throughput, transaction confirmation time, gas fees, etc.; these indicators can reflect Ethereum's technical performance. Lastly are financial indicators, such as the flow of institutional funds and changes in trading volume; these indicators can reflect the market's attention to ETH. Only by analyzing these core indicators comprehensively can we make accurate judgments and not be misled by singular news.
In fact, the increased holdings news from Trend Research is more like a "signal" for us retail investors, rather than an "instruction." It tells us that professional institutions still see the long-term value of ETH, which provides us with a reference, but the final investment decision still relies on ourselves.
I will continue to track the changes in ETH's core indicators and market trends to bring more practical analyses and suggestions to everyone. If you feel helpless and confused in trading right now and want to learn more about cryptocurrency-related knowledge and first-hand cutting-edge information, follow me.
