The crypto market sentiment remains cautiously optimistic, with Ethereum (ETH) showing stronger performance compared to Bitcoin (BTC). Traders are closely monitoring the critical support level of $3,200 for ETH, which, after triggering stop-loss orders, led to a brief market rebound. Macro factors such as the rapid appreciation of the Chinese yuan past 7.06 and the U.S. dollar falling below its 50-day moving average are drawing significant attention, with many traders subscribing to the "bad news is good news" narrative. However, the rapid depreciation of USDT is causing some traders to worry about withdrawal issues.
Covered call strategies continue to gain popularity, as several traders opted to sell calls after ETH rebounded from the $3,200 level, indicating expectations of reduced short-term volatility and a sideways market. Additionally, the reflexivity effect of the "Zhang Wuji Indicator" is a hot topic, with traders suggesting that if this signal itself becomes a cue to halt volatility, it would confirm the presence of reflexivity in the market. Meanwhile, the completion of the ETH Fusaka upgrade has seen a muted market response, highlighting the current bear market's inability to drive prices through technical upgrades, which are more impactful during bull markets.
Cautious Optimism in Crypto Markets as ETH Outperforms BTC
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