Yi Lihua's Commentary on ETH Market Trends

Author: JackYi

Unified Reply to Some Questions:

1. Why is the price of ETH 50 points lower than the previous peak, while the price of BTC is nearly 40% higher? Is a full position in ETH not based on BTC logic? Firstly, this cycle is in the interest rate hike cycle. Apart from BTC breaking new highs, other cryptocurrencies have underperformed. These have been the most difficult four years for crypto. However, with the upcoming interest rate cut cycle, we believe a crypto bull market is coming, and ETH's gains will outperform BTC. Historically, several bull markets have seen ETH outperform BTC.

2. Given the four-year cycle pattern, this time ETH has been consolidating around 3000 for several months. Aren't you worried about the bear market and further declines that everyone is talking about?

We believe that under the DAT model, interest rate cut cycle, crypto policies, and the globalization of stablecoins, the four-year cycle pattern has become invalid. Now is the best time to buy crypto, especially ETH. ETH will be the biggest beneficiary of this bull market. In the previous round of ETH weakness, there weren't many applications or opportunities. However, this time, with the US Treasury bond market maintaining its current stability, the only sustainable opportunity lies in stablecoins, which offer dozens of times the growth potential. There's also the opportunity to put trillions of dollars of assets into on-chain financial services, and ETH is the biggest beneficiary and ecosystem carrier. 3. People are worried about the safety of their positions, especially since our ETH has lending involved, which is equivalent to leverage. Will there be any danger if the price falls? There's no need to worry. We have ample preparations and can repay most of our lending positions at any time. We've calculated that ETH is absolutely safe above $1000. So there's no need to worry; it's just that each institution has different operational strategies. 4. If we don't buy in large quantities here, won't there be better buying opportunities? Why the rush to buy at the bottom? We don't have a god's-eye view; we don't know when the bottom will be, nor can we precisely buy at the absolute lowest point. Like the last round when Bitcoin was below 20,000, was there any difference between buying BTC at 15,000 and BTC at 20,000? I believe not. For us, the key is that this area is the bottom, and even if we don't buy, the market will. Our size can't influence the trend. 5. What do you think of those KOLs who are calling for a sell-off, even if they don't have large positions, yet they keep mocking us bulls or trying to get attention? The market will always be balanced, with both long and short positions. Every opinion is normal, and we don't judge based on position size. As long as the viewpoint is objective and logical, we will carefully observe and learn from it. However, we ignore those who use extremely low methods to gain exposure; they are truly worthless. Especially those KOLs who are launching projects and running away with investors' money—everyone has their own survival strategy. 6. Most OGs have retired from the market, yet you've been frequently updating Twitter this year, constantly advocating for ETH, and even sold at 4500. Was this to encourage more people to buy in, or are you genuinely bullish on ETH? We firmly believe in the long-term value growth of ETH, and our actions have always been consistent. The only time we sold at 4500 was because our analysis revealed significant short-term risks, and our on-chain operations were transparent and visible to everyone. You can use this as a reference to make your own judgment. Selling was to buy more ETH; anyone who could profit from large price swings would choose this strategy to earn more ETH. There was absolutely no intention to encourage others to buy in. ETH is a $360 billion asset; even though we are one of the world's largest ETH investors, we cannot influence its trend. We are simply following the trend; it will rise regardless of our presence.