$ETH
ETH surged 70% in three months
Yet liquidity fell
Something feels off about this rally
Guys,
Ethereum was really on fire in Q3
Climbing around 70% in one go
Leaving Bitcoin's roughly 42% Q3 gain in the dust
But there's one detail
I think is more worth watching than the 70% gain
The higher ETH climbs,
The thinner the order book gets
According to CoinGecko,
ETH's median market depth during Q3 was only 35%–45% of BTC's
At least 60% at the same time last year
A very noticeable drop
What does that mean?
Simply put,
Before, $100 worth of buy and sell orders could absorb a wave of trading
Now, maybe just $50 could push the price up a notch
The price has gone up,
But there's less capital on the order book to absorb trades
This looks great in a bull market
When buyers rush in,
ETH can get pushed up quickly
But it works the other way too
If someone decides to dump,
The price could fall even faster
And this doesn't mean ETH has no liquidity left
Within 0.15% of ETH's current price,
There's still around $13–14 million in market depth
ETH's 70% surge this time
Didn't bring a thicker order book along with it
That's pretty strange
It's like a car going incredibly fast
With a powerful engine,
But thinner tires
If money keeps flowing in during Q4,
ETH can of course keep climbing
But if money starts pulling out,
The volatility amplified by thinner liquidity
Could be even more intense than the rally itself
No wonder Ethereum's been so wild lately
Turns out there's a reason
So guys,
Don't be reckless
Set your stop-losses when you should
Cut your losses when you should
Don't try to tough it out
Or it'll definitely hurt even more
#以太坊q3涨70%流动性下降
ETH surged 70% in three months
Yet liquidity fell
Something feels off about this rally
Guys,
Ethereum was really on fire in Q3
Climbing around 70% in one go
Leaving Bitcoin's roughly 42% Q3 gain in the dust
But there's one detail
I think is more worth watching than the 70% gain
The higher ETH climbs,
The thinner the order book gets
According to CoinGecko,
ETH's median market depth during Q3 was only 35%–45% of BTC's
At least 60% at the same time last year
A very noticeable drop
What does that mean?
Simply put,
Before, $100 worth of buy and sell orders could absorb a wave of trading
Now, maybe just $50 could push the price up a notch
The price has gone up,
But there's less capital on the order book to absorb trades
This looks great in a bull market
When buyers rush in,
ETH can get pushed up quickly
But it works the other way too
If someone decides to dump,
The price could fall even faster
And this doesn't mean ETH has no liquidity left
Within 0.15% of ETH's current price,
There's still around $13–14 million in market depth
ETH's 70% surge this time
Didn't bring a thicker order book along with it
That's pretty strange
It's like a car going incredibly fast
With a powerful engine,
But thinner tires
If money keeps flowing in during Q4,
ETH can of course keep climbing
But if money starts pulling out,
The volatility amplified by thinner liquidity
Could be even more intense than the rally itself
No wonder Ethereum's been so wild lately
Turns out there's a reason
So guys,
Don't be reckless
Set your stop-losses when you should
Cut your losses when you should
Don't try to tough it out
Or it'll definitely hurt even more
#以太坊q3涨70%流动性下降