Recently, the Ethereum (ETH) market has shown strong performance, attracting widespread attention from investors. Analysis indicates that this upward trend is primarily driven by three key factors: reduced selling pressure, increased capital inflows, and a contraction in Circulating Supply.
First, the circulating supply of ETH on exchanges has dropped to its lowest level in 8 years, which means that the amount of ETH that may be sold in the short term has significantly decreased. In this situation, market selling pressure has notably reduced, creating favorable conditions for the price of ETH to rise.
Secondly, institutional investors are actively entering the ETH market. Several large institutions have begun to significantly increase their holdings of ETH, with one institution even investing 2.9 billion dollars. This investment strategy, similar to "MicroStrategy for ETH," is on the rise, coupled with the continuous influx of funds from Wall Street, injecting strong momentum into the ETH market.
Third, the circulating supply of ETH is further shrinking. Currently, about 30% of ETH is being used for staking and locking, which directly reduces the circulating supply in the market, leading to a tighter supply-demand relationship and subsequently driving up prices.
Looking back at 2017, ETH experienced a hundredfold increase after a decrease in retail holdings. The current market characteristics are quite similar to those at that time, which has sparked optimistic expectations among investors regarding ETH's future performance. In the short term, $4100 and $4900 are seen as important price targets.
For ordinary investors, it is recommended to adopt the following strategies:
1. Investors who already hold ETH should remain patient and avoid selling too early due to short-term fluctuations. 2. Investors who do not yet hold ETH should not blindly chase high prices, but should wait for a market correction and adopt a strategy of buying in batches.
Overall, ETH is currently in a favorable state with light selling pressure, ample funds, and a tight Circulating Supply, which provides positive support for its future price trends. However, investors still need to respond cautiously to market fluctuations and manage risks effectively. While seizing potential opportunities, it is essential to remain rational and avoid excessive speculative behavior.
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SatoshiLegend
· 08-11 01:27
Seeing through this money game, it is essentially a zero-sum game... The PoS White Paper from back in the day already hinted at this.
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BoredStaker
· 08-10 23:37
Is it another sign of a bull run? Calm down, retail investors.
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OnChainDetective
· 08-08 07:51
2.9 billion... Another big whale is accumulating outside the market. Who has noticed the traces of the consecutive transfers?
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RugPullAlertBot
· 08-08 07:50
The collapse of the capital pool is just around the corner.
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LayerZeroEnjoyer
· 08-08 07:45
I have already started to lay off retail investors~
Recently, the Ethereum (ETH) market has shown strong performance, attracting widespread attention from investors. Analysis indicates that this upward trend is primarily driven by three key factors: reduced selling pressure, increased capital inflows, and a contraction in Circulating Supply.
First, the circulating supply of ETH on exchanges has dropped to its lowest level in 8 years, which means that the amount of ETH that may be sold in the short term has significantly decreased. In this situation, market selling pressure has notably reduced, creating favorable conditions for the price of ETH to rise.
Secondly, institutional investors are actively entering the ETH market. Several large institutions have begun to significantly increase their holdings of ETH, with one institution even investing 2.9 billion dollars. This investment strategy, similar to "MicroStrategy for ETH," is on the rise, coupled with the continuous influx of funds from Wall Street, injecting strong momentum into the ETH market.
Third, the circulating supply of ETH is further shrinking. Currently, about 30% of ETH is being used for staking and locking, which directly reduces the circulating supply in the market, leading to a tighter supply-demand relationship and subsequently driving up prices.
Looking back at 2017, ETH experienced a hundredfold increase after a decrease in retail holdings. The current market characteristics are quite similar to those at that time, which has sparked optimistic expectations among investors regarding ETH's future performance. In the short term, $4100 and $4900 are seen as important price targets.
For ordinary investors, it is recommended to adopt the following strategies:
1. Investors who already hold ETH should remain patient and avoid selling too early due to short-term fluctuations.
2. Investors who do not yet hold ETH should not blindly chase high prices, but should wait for a market correction and adopt a strategy of buying in batches.
Overall, ETH is currently in a favorable state with light selling pressure, ample funds, and a tight Circulating Supply, which provides positive support for its future price trends. However, investors still need to respond cautiously to market fluctuations and manage risks effectively. While seizing potential opportunities, it is essential to remain rational and avoid excessive speculative behavior.