Recently, Ethereum ( ETH ) market has seen surprising changes. In just 3 minutes, the ETH price surged by 3%, reaching a high of $4200. However, this sudden price increase did not stem from any significant technological breakthroughs or widespread bull run sentiment. Instead, a deep analysis of on-chain data reveals a different story: this could be a well-orchestrated market manipulation.

Market manipulation is mainly carried out in two ways:

First, some listed companies use financing from the US stock market to announce large purchases of ETH to create hype. When the price of the coin rises, they use the appreciated ETH as collateral for refinancing to continue purchasing—this cyclical strategy can influence the entire market with limited funds.

Secondly, large holders (commonly known as "whales") buy a large amount of ETH at low prices and then suddenly drive up the price, forcing short sellers to close their positions. When retail investors chase the price higher, these large holders quietly sell to take profits. Recent data shows that over 100,000 people across the network have been liquidated as a result.

This price increase is difficult to be seen as a true bull run signal or the result of technological advancement for the following reasons:

1. Technical aspect: There are no major upgrade announcements, and there has been no significant progress in the decentralized finance (DeFi) and Layer 2 solutions.
2. Market performance: Bitcoin prices remain stable, and other altcoins have not shown rotation in rising prices. The Federal Reserve's expectations for interest rate cuts are also insufficient to support the "ETH alone rising" phenomenon.
3. Market Logic: Typically, real positive news should first impact Bitcoin, rather than the abnormal performance of a single cryptocurrency.

For ordinary investors, the following suggestions may help protect assets:

1. Avoid blindly chasing highs, especially when Bitcoin prices are consolidating.
2. Closely monitor on-chain data, especially changes in large holder positions and fluctuations in stablecoins, to avoid potential market manipulation.
3. Maintain cautious position management, set stop-loss orders, and do not take excessive risks.

Essentially, this phenomenon may be market manipulation utilizing the narrative of "institutional entry" by capital. Investors should remember that rapid increases are often accompanied by equally rapid declines, and protecting principal is always the most important investment principle.

In the cryptocurrency market, similar "illogical surges" are not uncommon. Investors should remain vigilant, gain a deep understanding of market dynamics, and avoid becoming victims of market manipulation. Only through rational analysis and careful decision-making can one survive and thrive in this market filled with opportunities and risks.