Auntie Second fell from grace, remember the previous cycle,

2018-2021 was the big bull market, when DeFi was booming,
the inaugural year with far-reaching influence, seriously affecting crypto enthusiasts' future decisions!
At that time, Auntie Second and Bitcoin took turns leading the team,
leading all altcoins, reaching the moon (To the moon).
Auntie Second's bull market surged over 50 times,
so many old-timers in the crypto world expected Auntie Second to shine again, achieve financial freedom,
almost holding over 60% of Auntie Second, missing out on the 2024-2025 bull market!
Ethereum ETH price remains sluggish,
resulting from multiple factors including internal ecosystem issues, external competition, institutional funds, and macro environment,
the core reasons can be summarized as follows:
1. On-chain activity and revenue have sharply declined
2. Technical upgrades causing unexpected value diversion
3. Weak internal ecosystem and fundamentals
4. External competition diverting market share
5. Institutional confidence has been shaken, internal and external troubles!!!
Current risks to watch out for:
Short-term technical outlook remains bearish:
Currently, ETH has broken below the key support at $1,600,
if it breaks below $1,400, it is likely to further test the $1,000-$1,100 range,
there is a possibility of continued downside in the short term;
over the past week, more than $1.28 billion in long positions have been liquidated,
market bullish confidence has been seriously damaged.
Macro environment still uncertain:
The market's expectation for the Federal Reserve to cut rates has been lowered from three cuts to one,
a high-interest-rate environment will continue to suppress risk asset valuations,
Ecological competition pressure remains:
New public chains are still diverting projects and funds from Ethereum,
the actual effect of the core upgrade Glamsterdam hard fork still needs time to verify,
it’s difficult to quickly reverse the downward trend in market share in the short term.
Suitable layout strategies for ordinary investors: $ETH
If you are a long-term value investor:
You can adopt a phased dollar-cost averaging approach,
building a partial position at current prices,
adding more if the price drops to the $1,000-$1,200 range,
to lower the average cost and hold long-term for the next cycle.
If you are a short-term trader:
Currently, it’s not recommended to rush into buying the dip,
patiently wait for the price to stabilize above $1,700,
and after the ETF fund outflow trend reverses, consider entering more safely.
$ETH
$ETH