Would you dare to buy ETH at $2000?
The SEC chairman just stated that it's not a security, and the CFTC approved it as collateral in the derivatives market. Whales have been snapping up tens of millions of dollars in a week—but what about the price? It dropped 3.4% in one day, plummeting to $2050. One whale even opened a $36 million short position with 5x leverage, openly shorting. Retail investors are in an uproar: all the good news is a hoax, is Ethereum doomed?
Let's look at the surface: a mountain of good news, yet the price has plummeted.
In the past 24 hours, ETH has fallen from $2120 to $2050, a drop of 3.4%. It's hovering near the lower Bollinger Band, and the RSI has dropped below 30, indicating severe oversold conditions. The 5-day and 10-day moving averages have formed a death cross, and the moving averages are in a bearish alignment. The technicals tell you: it will continue to fall.
The first thing: the regulatory green light is on, the road is paved.
The SEC chairman himself said: Bitcoin and Ethereum are not securities. The CFTC has directly approved Bitcoin, Ethereum, and USDC as collateral in the derivatives market. What does this mean? Previously, institutions wanting to trade Ethereum had to overcome numerous compliance hurdles. Now? The door to compliance is completely open, and the path for capital in is paved.
The second thing: whales are secretly accumulating tokens, and they are the "veteran" whales.
One Ethereum veteran bought $19.5 million worth of ETH this week, with a recent single purchase of $3 million. Another whale has accumulated 8,662 tokens in a month, worth $18.05 million.
The third thing: someone opened a $36 million short position with 5x leverage.
What does this signal? It indicates someone wants to create panic, liquidate the last batch of long positions, and then buy at the bottom.
On one hand, there's full regulatory easing, whale accumulation, and the opening of institutional collateral channels.
On one hand, prices are plummeting, short sellers are positioning themselves, and Cauliflower has lowered its target price to $3175.
The key level is $2000; this is the last line of defense for both bulls and bears.
If you are a short-term trader: Consider a small long position near $2000, targeting $2080 to $2100. Cut your losses decisively if it falls below $2000. The next target is $1975. Don't hold on, don't be greedy, run if it breaks down.
If you are a long-term trader: Start building your position in batches now. Enter at $2000, another batch at $1975, and yet another batch at $1950. The regulators have revealed their hand; institutional money will come sooner or later.
ETH is now like itself in 2020—those who don't understand it think it's going to go to zero, while those who do understand know this is the last chance to get on board.
