$ETH Black Friday’s market action—unforgettable, right!
I wonder if you’ve noticed that Trump and Musk have both become much more low-key since the Democrats took control of Congress. After all, without power, they can’t throw their weight around. So we’re unlikely to see any crypto-friendly news from Trump in the near future, and a major short-term rally in the leading cryptocurrencies is simply unrealistic. Don’t get caught up in FOMO and rush to buy the dip—only to catch a falling knife!
Here are Caibao’s reasons for being bearish on Ethereum recently:
1. Over the past few days, BlackRock has repeatedly transferred large amounts of BTC and ETH to exchanges. The Ethereum Foundation sold 2,000 ETH, and some whales have also been selling. What makes retail investors think prices are about to rise?
2. Strategy faces around $2.8 billion in debt repayment obligations at the end of the month, but the company’s operating cash flow may not be enough to cover such a large funding need. If it can’t raise enough financing, it may have to sell some of its Bitcoin to pay the interest. If that sell-off does happen, it would put pressure on BTC and could also drag down ETH and sentiment across the entire crypto market.
3. A rate hike in December is all but certain. If the interest-rate environment remains tight, it will be difficult for high-risk assets like crypto to attract new capital.
All these developments suggest that the leading cryptocurrencies are bound to weaken in the near term, rather than stage a major rally. The biggest problems facing them right now are a lack of capital, positive catalysts, and confidence. So Caibao still recommends prioritizing short positions on rebounds! At its current price of 1,933, Ethereum can be shorted directly, with a target of 1,900.
I wonder if you’ve noticed that Trump and Musk have both become much more low-key since the Democrats took control of Congress. After all, without power, they can’t throw their weight around. So we’re unlikely to see any crypto-friendly news from Trump in the near future, and a major short-term rally in the leading cryptocurrencies is simply unrealistic. Don’t get caught up in FOMO and rush to buy the dip—only to catch a falling knife!
Here are Caibao’s reasons for being bearish on Ethereum recently:
1. Over the past few days, BlackRock has repeatedly transferred large amounts of BTC and ETH to exchanges. The Ethereum Foundation sold 2,000 ETH, and some whales have also been selling. What makes retail investors think prices are about to rise?
2. Strategy faces around $2.8 billion in debt repayment obligations at the end of the month, but the company’s operating cash flow may not be enough to cover such a large funding need. If it can’t raise enough financing, it may have to sell some of its Bitcoin to pay the interest. If that sell-off does happen, it would put pressure on BTC and could also drag down ETH and sentiment across the entire crypto market.
3. A rate hike in December is all but certain. If the interest-rate environment remains tight, it will be difficult for high-risk assets like crypto to attract new capital.
All these developments suggest that the leading cryptocurrencies are bound to weaken in the near term, rather than stage a major rally. The biggest problems facing them right now are a lack of capital, positive catalysts, and confidence. So Caibao still recommends prioritizing short positions on rebounds! At its current price of 1,933, Ethereum can be shorted directly, with a target of 1,900.
