Ethereum has experienced a rapid decline over the past few days, and most of the long positions have been wiped out. After the short-term plunge, the bears haven't yet had the chance to fully build their positions, and the market is in a delicate balance.

From a Fibonacci retracement perspective, using the recent low of 2620 as a reference point, the current price is oscillating within a key zone. Of particular interest is the 55th trading day, where the 0.786 retracement level may become a potential turning point. Coupled with a 1.25x extension in the time cycle, this is indeed a moment to make a directional decision.

Interestingly, the Asian stock markets have surged strongly in the past two days, but on a broader view, the US Nasdaq index has actually been bottoming out for several months. There is a certain correlation across global capital markets, and I tend to believe that the next wave of market movement will be accompanied by a rally in the stock markets.

The rapid decline in Bitcoin, Ethereum, and altcoins in this round is essentially a clearing process—liquidations have been completed, making room for the subsequent bullish wave. The logic of making money in the crypto space is like this: not everyone can be comfortable; some must be cleared out. Once the chips are fully transferred to the patient holders, the next upward trend may truly begin.