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The price fluctuations of Ethereum (ETH) seem to follow an interesting pattern: each increase is usually a doubling from the bottom price. This phenomenon has been validated during the seven major increases over the past few years. Based on this rule, if we set the starting point of this increase at $2120, then the potential top could be around $4240, considering a volatility range of 5-10%.
However, we cannot ignore the historical high point of around $4800, which will be an important resistance level. Typically, when any cryptocurrency approaches its historical high, it faces significant pullbacks. Therefore, if ETH reaches this level, investors may need to act cautiously and even consider taking profits.
For those investors who missed this wave of ETH rise, there are two possible coping strategies:
1. Focus on small tokens within the ETH ecosystem and look for short-term rebound opportunities. For example, certain tokens may still have room for growth, but this strategy requires careful execution and carries higher risks.
2. Adopt a more conservative long-term strategy. This approach emphasizes entering the market during times of panic or extreme fear, rather than taking risks when greed is high. While this method may not precisely capture the lowest or highest points, it typically achieves stable returns over the long term.
These two strategies represent two different trading philosophies in the cryptocurrency market: one is more aggressive, while the other is more conservative. The aggressive strategy seeks short-term profits but carries higher risks; the conservative strategy focuses on long-term stable returns with relatively lower risks.
Every investor needs to choose a suitable strategy based on their risk tolerance and investment goals. Regardless of the chosen method, maintaining caution and continuous learning are key to achieving success in this highly volatile market.