The mainstream currency drives the market in turn, and the reason for the outbreak of ETH is not complicated
In the past two days, the mainstream currencies have shown their power one after another. The day before yesterday, Wright led the rise of more than 4% for a long time, driving other mainstream currencies to break through the long-term shock range.
Early this morning, ETH started the explosive pull mode relay, with a daily increase of more than 7%, standing at $260 for the first time since March. At the same time, it also seized the opportunity for other mainstream currencies to break through and follow-up yesterday. It can be said that the rise of mainstream currencies will be late. But it will never be absent, especially a currency like ETH that is also very important in the mainstream currency.
There are different opinions on the reasons for the rise of Ethereum in the market, but we observe that there are three main reasons that can play an important role in the rise of ETH in the market:
1. BSN, a blockchain service network supported by China at the national level, has cooperated with 6 public chains including Tezos, NEO, Nervos, EOS, IRISnet and Ethereum. Beginning on August 10th, developers on these six public chains will be able to use data storage and bandwidth from BSN overseas data centers to build DApps and run nodes. Global users will access China's enterprise chain and financial data through the cross-chain structure of the network and the partnership with China UnionPay.
2. When DeFi broke out some time ago, many investors in the market were staring at ETH. After all, most of the DeFi applications that exploded were based on the Ethereum public chain. As the taken of Ethereum, ETH did have a reason to explode. Perhaps because of the downturn and suppression of Bitcoin, or because the funds in the market are all flowing to altcoins and DeFi projects, ETH has never seen an explosive market.
However, the potential value of ETH cannot be concealed if there is no explosion for the time being. In our articles, we have always recommended that the only currencies worth buying are Bitcoin, ETH and the three major platform currencies, and ETH is the only one that enters with the potential of project application, so It is also reasonable for current funds to notice ETH.
3. Yesterday, some developers said that the final test network of Ethereum 2.0 will be launched on August 4, and the main network may arrive as early as November 4. Ethereum 2.0 is almost the most eye-catching topic in the rest of this year. After Bitcoin is halved, projects worthy of attention include DeFi, Flicoin, Polkadot and ETH2.0.
Although Flicoin has not yet been officially launched, the performance of mining machines and FIL futures in the early stage is indeed very good. It cannot be ruled out that these topics are caused by market hype, but the market is like this. It has been maintained for too long, which is why everyone pays more attention to ETH2.0, because once everyone is tired of the other three hot spots, ETH will be the next brightest star.
At present, the mainstream currencies are showing their power one after another. Many people think that the bull market has come, but we can’t be optimistic for the time being. After all, the current position of Bitcoin is not enough to support the topic of "bull market". The real bull market effect still needs Bitcoin to lead.
What is clearly visible is that with the continuous rise of mainstream currencies, the amount of funds in the past two days does have a tendency to flow back to mainstream currencies. Moreover, the most important thing is that the market fluctuates. No matter whether it is rising or falling, as long as there is room for trading , the result will be better than keeping things calm.
Back to the market, the market has been gradually activated in the past two days. Of course, many people still hold the possibility of attracting more. After all, when the dealer starts to move, the fundamentals and technical aspects are pale and weak.
The current daily performance is gradually improving, and the price has hit a new high for nearly a month, and it stepped back on the 5-day moving average yesterday. Although it is driven by ETH, at least from the perspective of technical indicators, it is quite reasonable. The current five-day moving average shows signs of rising, and the MACD turns upwards. From the perspective of the disk, it is a bullish trend for currency holdings.
What is slightly lacking is that the price has been rising one after another, but the volume has not kept up in time. In fact, the main reason is that yesterday's daytime transactions were lagging behind. It is not a bad performance to catch up with such a high volume when it rose early this morning.
The hourly line is basically in line with the speculation in our article yesterday afternoon. The 5/10 daily moving average is too far away from the 30-day moving average. We need to wait for the 30-day moving average to confirm the support level. Basically, it will not go in the opposite direction directly during the second callback. Yesterday's trend is a perfect verification.
It is currently in a callback state, which is not necessarily a bad thing for the market. The callback confirms that the rise of the support level is often more reliable, and the market that continues to rise should be worried.
Going back to the topic at the beginning, if the market is tempting, what should I do if I get in the car and smash the market later? But if you don't get in the car, it will be a pity that the market will go up like this.
There is basically no standard answer to this question, because no matter how strong the market rises, we have to beware of the backlash of the main force from time to time in a bull market, not to mention that it has not yet officially come out, so we have been emphasizing the single strategy.
In a market like this, one can tell by looking at the trading volume that there are market makers who are deliberately cooperating with the pull, and these two waves of upswing have caused heavy losses to the short sellers. After all, the market makers are not doing charity. will increase.
With the current rhythm, if it is taken from a low position, it is acceptable to take out a small part of the pocket, and wait for the rest of the position to wait, set a stop loss, and if the market continues to rise, before the pullback It's time to choose to increase the position.
Whether you are holding currency and want to increase your position or you want to enter the market now, you must step on the rhythm. The risk of chasing the market directly at the moment of breakthrough and when the current increase is already too high will be very risky. It is best The best time to intervene is when we are waiting for a callback. When the market pulls back, we can feel whether the shock is stable and whether it has bottomed out. It is the safest thing to add or buy in this matter. Secondly, stop loss is what we do for these operations. Guarantee, without stop loss, the risk will be infinitely magnified.
