Recently, everyone has been asking the same question—what does the increasing internal division within the Federal Reserve mean for the crypto market? When will ETH's current volatility end?



Instead of just looking at candlestick charts, it's better to understand the underlying logic. The split within the Federal Reserve is not actually a risk; rather, it’s a positive signal. Why? Because liquidity is the fundamental factor that determines the rise and fall of the crypto market. During rate hike cycles, market liquidity dries up, and pressure is obvious; when expectations of rate cuts emerge, funds will flow back in. Currently, with differing opinions among Fed officials and the interest rate path shifting from "clear" to "uncertain," this uncertainty provides smart capital with opportunities to position.

Disagreements can lead to market misjudgments. Short-term large fluctuations often scare retail investors out, which is the best time for the big players to accumulate. When liquidity expectations become truly clear and the funding environment shifts, they will have already set up their positions, and the harvest will begin.

Looking at ETH’s current trend, some think ETH can't rise because of heavy selling pressure, but that’s not the case. The big players are not in a hurry to push the price up. The market sentiment is extremely restless—retail traders chasing gains and selling on dips are everywhere. If they try to force a rally now, it will only cause these traders to buy at high levels, turning the big players into bagholders. Their strategy is to repeatedly shake out traders within the 3180 to 3310 range; the purpose of this oscillation is to shake out those with unstable mindsets. The steadfast holders will be filtered out, and when the rally happens, there will be a solid foundation.
ETH1,32%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 7
  • Repost
  • Share
Comment
0/400
StealthDeployervip
· 01-10 05:48
That's right, retail investors are the ones who get washed out. I've already seen through it long ago.
View OriginalReply0
DeFiChefvip
· 01-10 01:21
Basically, the main players are shaking out the market. Retail investors, don't panic. Hold if you believe in it.
View OriginalReply0
MetaEggplantvip
· 01-09 11:02
Basically, it's just waiting for the main players to accumulate enough before pushing up. Retail investors should exit early, don't wait to be shaken out.
View OriginalReply0
GamefiEscapeArtistvip
· 01-08 21:53
It's that same theory of shaking out... Sounds nice, but it's just to make us hold on until nightfall.
View OriginalReply0
MemeCoinSavantvip
· 01-08 21:46
ngl the liquidity thesis here is lowkey peer-reviewed vibes... but fr tho, watching these retail plebs get shaken out at 3180-3310 while whales accumulate is just *chef's kiss* game theory optimal
Reply0
mev_me_maybevip
· 01-08 21:46
It's the same old washout theory again. Every time, they say to filter for steadfast holders, but I end up being the retail investor shaken out haha.
View OriginalReply0
0xOverleveragedvip
· 01-08 21:34
Another theory about a shakeout, why do you all trust the main players so much? Are the main players really shaking out the market? Retail investors should be the ones to run. Federal Reserve divergence = strategic opportunity? I feel like it's just uncertainty risk. Wait, this logic seems to only apply to those who are making money. Repeated shakeouts between 3180-3310, my stop-loss orders have already learned their lesson. The idea that liquidity determines rises and falls is correct, but who knows when liquidity will actually arrive? Those who hold firmly are being filtered out, which means the ones losing money are the ones who are not steadfast. I just want to know when the main players will start to harvest so I can get on board. This article sounds comfortable to read, but I still don't dare to go all in. People with unstable mindsets, that's me, it hurts a lot.
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • بالعربية
  • Português (Brasil)
  • 简体中文
  • English
  • Español
  • Français (Afrique)
  • Bahasa Indonesia
  • 日本語
  • Português (Portugal)
  • Русский
  • 繁體中文
  • Українська
  • Tiếng Việt