The recent trends in the cryptocurrency market have attracted widespread attention. This Friday, Federal Reserve Chairman Powell will deliver an important speech in Jackson Hole, which may have a significant impact on the market. Previously, the market generally expected a rate cut in September, but the current inflationary pressures still exist, leading to a weakening of the rate cut expectations, which has resulted in a pullback in both the US stock and cryptocurrency markets.

At the same time, geopolitical factors cannot be ignored. The progress of negotiations between the U.S., Russia, and Ukraine will directly affect market risk premiums. If the negotiations make positive progress, it may reduce market risk; conversely, if the negotiations break down, market sentiment may quickly deteriorate.

Ethereum (ETH) recently approached its historical high but has now fallen below $4200. Coupled with several token unlocks this week, the market liquidity faces some pressure in the short term. However, institutional investors remain positive, with large institutions continuing to increase their holdings of ETH, indicating that major funds maintain an optimistic outlook on the market.

The key to the market direction this week lies in Powell's speech content. If his attitude leans towards easing, Bitcoin (BTC) is expected to return to $120,000, and ETH may break through $4,500. However, if he continues to emphasize the stance against inflation, the market may continue to fluctuate. For small encryption currencies, investors should focus on projects that have substantial positive news and solid logical support, avoiding blind chasing of high prices.

Overall, although market volatility may intensify in the short term, the long-term trend remains unchanged. Finding suitable low points for positioning during the current adjustment period may be a relatively robust investment strategy. Investors should closely monitor various factors such as the macroeconomic environment, changes in regulatory policies, and technological developments to formulate a more comprehensive investment strategy.