I was never sold on the pump and while I was pleased to see Ethereum upwards of $1500, I implore everyone to exercise caution in the market. It is important to understand how the crypto market operates before you dive in.
The thing about the crypto market is that it is rife with hyperboles and small moves often translate to disproportionate reactions on the interweb. Interestingly, this mentality to get overly excited swings in either direction.
Understanding this aspect of the crypto market will enable you to make better decisions. In fact, if you understand certain aspects of the crypto market, you will always be calm because nothing really surprises you anymore.
Alas, Cointelegraph's analyst holds a similar view to mine about the crypto market. The analyst went as far as calling this recent upward price action a "fake pump".
"Fake pump" mirrors my view of the market quite precisely. There's really no reason why assets are moving the way they are and with trading volumes so low, I doubt that this pump will be sustainable.
Generally speaking, there's not enough money in the system to sustain this height. In the worst-case scenario, everything just comes crashing down and people who FOMO in will be exit liquidity for whales looking to play it safe.
Something to think about
Ethereum is still currently a little bit above $1500 with a 24hr high of around $1650 range. That's a nice range, all things considered, but my guess is that we'll see it drop back to the $1100-$1200 range that it held at the "peak" of the bear market.
Speaking of the bear market, something feels different about this one. It doesn't feel as bearish as I thought it would be, which makes me both scared and happy at the same time due to two distinctly different possible scenarios.
I'm happy because if this is truly the peak of the bear market and we're truly in the "maximum pain" region at this price range, then it means the crypto market has become more mature and stronger than ever. What I"m saying is despite how low prices are and with the normal four-year cycle, it doesn't seem so bad for a bear market.
On the flip side, I'm worried because if we're truly in a bear market, things often get worst and the peak of a bear market is where we experience maximum pain. All things considered, the pain hasn't been quite as deep, which makes me worry that it is possible something worse is on the horizon.
In any case, it is important to always have the perspective of how far the crypto market has come and think about the journey ahead. Things may not be where you want them to be right now, but while it is possible for things to get much better, keep in mind that they could also be far worse than it is.
In either direction, always be ready to pivot and adjust your finances to suit the situation.
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