Speech Community Live: The Federal Reserve is about to cut interest rates, but ETH suddenly drops! Is it a trap or an opportunity?

Click on the link to enter Tencent Meeting: https://meeting.tencent.com/p/9850662513 On August 24th, the price of Ethereum experienced significant fluctuations, falling sharply by 8 after reaching a recent high of $4888.48. As of today, ETH is currently trading at $4759.72, with a drop of 1.86% in the past 24 hours. This plunge occurred after the Federal Reserve's Jackson Hole annual meeting, and investors had hoped that Powell's dovish remarks would continue to drive the market up, but the opposite was true. 【 01 Market situation, price collapse and explosive surge 】 The decline this time is fierce. Ethereum has fallen from its recent high and once fell below $4700. In fact, on August 23rd, ETH showed signs of decline due to the continued suppression of investor confidence by unexpected macroeconomic data from the United States. The sharp decline led to the spread of market panic. According to AiCoin data, the total amount of liquidated positions in contracts across the entire network in the past 24 hours reached 178 million US dollars, including 101 million US dollars for main and multiple orders. The liquidation amount of ETH itself is as high as 54.67 million US dollars, accounting for 30.56% of the total liquidation amount on the entire network. The market volatility surged sharply, and investors instantly went from frenzy to panic, with long short divergence reaching an extreme state. 【 Behind the scenes reasons, profit taking and policy uncertainty 】 This round of decline is mainly driven by two major factors. Profit taking pressure is the primary reason. Since April this year, the price of ETH has accumulated a huge increase from its low point, and early investors have benefited greatly. The uncertainty of Federal Reserve policies has exacerbated market volatility. Although Powell sent a clear signal of a September rate cut at the Jackson Hole Global Central Bank Annual Meeting, the market is concerned that if economic data exceeds expectations, the Federal Reserve may postpone the rate cut. The outflow of ETF funds also puts pressure on prices. Since August, Ethereum ETFs have experienced capital outflows, while Bitcoin ETFs have experienced consecutive days of capital outflows. 03 Long Short Duel, Key Positions and Future Trends Both long and short sides are fiercely competing around $4300-4700. This location has become the boundary between bulls and bears. On a technical level, ETH forms an important support area between $4600 and $4650, while resistance levels are at the psychological levels of $4850 and $5000. The middle band of the Bollinger Bands ($4459) has become a bullish dynamic support. Analysts have divergent views on the future market. Some analysts believe that ETH may fall to $4200 or even lower. Other institutions have raised their year-end targets to $7300. 【 04 Potential Opportunities, Expectations of Interest Rate Reduction, and Institutional Fundraising 】 Despite the short-term market weakness, potential opportunities are brewing. The expectation of the Federal Reserve cutting interest rates still exists. According to CME FedWatch data, the probability of a rate cut in September is as high as 87%, and the prospect of loose liquidity may boost risk assets. Institutions are quietly laying out. Data shows that institutional giants such as Galaxy Digital have transferred a large amount of ETH, reflecting the confidence and willingness of institutional investors to increase their holdings of ETH. Ethereum ETFs have also shown strong appeal. The US Ethereum spot ETF once set a record for daily inflows, indicating that institutional demand remains strong. [Investment advice: How to deal with the current market] Faced with the current market situation, investors should: 1. Avoid high leverage operations: The market is volatile, and high leverage can easily lead to the risk of liquidation. The $178 million sell-off in the past 24 hours is a bloody lesson. 2. Focus on key positions: closely monitor the support level of $4700 and the resistance level of $4850. These key positions will determine the short-term market direction. 3. Follow the flow of institutional funds: Monitor the flow of ETF funds and the movements of large institutions. The inflow of institutional funds is usually a long-term bullish signal. 4. Pay attention to Federal Reserve policies: The September Federal Reserve meeting will be crucial. Any clear signal about a rate cut could trigger significant market volatility. The market always bottoms out in fear, rises in hesitation, and ends in frenzy. The short-term fluctuations of ETH are just a small wave in the long-term development. Investors should remain clear headed, avoid high leverage operations, pay attention to the Federal Reserve's policy trends, and look beyond short-term fluctuations to focus on the long-term value of Ethereum as a "digital oil" Operation suggestion: 1. BTC 114750 long first target watch 115855 second target watch 116970; 2. ETH 4720 long, first target 4785, second target 4850. Join the language community communication group to obtain more services 1. Real time troubleshooting (online one-on-one question answering and sorting) 2. Professional technical analysis and theoretical learning 3. Construction and improvement of trading system- 4. Live streaming courses every day, contract termination, real-time order making, to help you successfully land! Every day, there are teachers in the group who provide precise positioning to answer questions and offer free guidance. Tencent Meeting Live: 985-066-2513 DingTalk Group Number: 120320009032 Every day, there are teachers in the group who provide precise positioning to answer questions and offer free guidance! Disclaimer: The above content only represents the author's personal opinion and is for communication and sharing purposes only. It does not represent the position or viewpoint of AiCoin and does not constitute any investment advice. Based on this investment, there may be external contacts, which have nothing to do with AiCoin, and the consequences shall be borne by oneself.