Market Analysis on August 3, 2025

With the US stock market closed over the weekend, the cryptocurrency market fell again last night. This not only serves as a prelude to the inertia drop after the US stock market opens but also indicates that the main force behind this sell-off comes from US players, or in other words, primarily Americans. Last night, Ethereum dropped below $3400, reaching its lowest point in nearly two weeks, while Bitcoin fell below $112000, breaking the previous week's low and coming close to the most important support price—$110000. This price is significant because it has previously experienced multiple breakthroughs and can be seen as the starting point for a new range. In this new range, it will inversely form an important support, the importance of which is self-evident.
The decline of Bitcoin is mainly linked to the US stock market. I mentioned before that for the strong Ethereum, it doesn't need Bitcoin to break 120,000; it just needs to maintain a sideways trend. However, things have not gone as hoped. Currently, looking at the US stock market, there may be a chance to get some breathing room after the weekend, especially since Bitcoin held at 110,000 yesterday, which reflects the confidence in the US stock market. In this wave of decline, many might be worried about Ethereum, as the maximum drop from the peak reached 15%. I actually think it is still acceptable; Ethereum's recent surge has leveraged a lot, and a pullback of more than ten points is normal; otherwise, a 10x leverage would be impossible to clear. Additionally, as shown in the image below, the exchange rate of Ethereum to Bitcoin has not broken a new low, indicating that Ethereum still belongs to the strong coin lineup.

Next, let's talk about how to view this. First, let me share my recent situation. First of all, regarding the current price,