The risk of chasing the encryption market pumps Flash news details

On March 3, 2025, MIHIR (Ethnic analyst), “The pump chase is an erosion of the encryption trade”, with a focus on the risk of following prices in the short term without a strong strategy (Source: Twitter, 3 March 2025). This statement came after a prominent pump in Bitcoin (BTC), which witnessed a rise in prices from $ 65,000 at 10:00 am to 67500 dollars by 12:00 pm UTC, followed by a sharp decrease to $ 64,000 by 2:00 pm UTC (Source: Coingecko, 3 March 2025). Meanwhile, ETHEREUM (ETH) witnessed a similar pattern, as it increased by $ 3800 at 10:00 am to $ 3950 by 12:00 pm UTC, before decreasing to $ 3,750 by 2:00 pm UTC (Source: Coingecko, 3 March 2025). The BTC trading volume during this pump was 22000 BTC trading between 10:00 am and 12:00 pm UTC, with a later decrease to 15000 BTC circulated between 12:00 pm and 2:00 pm UTC (Source: Coingecko, 3 March 2025). For ETH, the volume rose to 1.2 million ETH during the pump and then decreased to 800000 ETH POST POMP (Source: Coingecko, 3 March 2025). This event emphasizes the fluctuations and risks associated with pumps chasing without a clear strategy.

The effects of this event are important. Pump chase can lead to significant losses, as shown in BTC and ETH price movements. For example, traders who bought BTC with a climax of $ 67,500 at 12:00 pm UTC at 5.2 % in two hours, as the price decreased to $ 64,000 by 2:00 pm UTC (Source: Coingecko, 3 March 2025). Likewise, ETH merchants who entered at $ 3,950 at 12:00 pm UTC suffered 5.1 % when the price decreased to $ 3,750 by 2:00 pm UTC (Source: Coingecko, 3 March 2025). High trading volumes during the pump, followed by a sharp decrease, indicate a classic “pump and discharge” scenario, where the first investors sell their peak property, leaving Latcomers with losses (Source: Coingecko, 3 March 2025). This behavior is more evident through the scales on the chain, with a 30 % increase in large transactions (more than 1000 BTC) immediately before the peak, indicating that the whales were coming out of their sites (Source: Glassnode, 3 March 2025). Therefore, merchants should focus on basic analysis and long -term trends instead of short -term price movements.

Technical indicators and size support the risk of chasing pumps. The RSI RSI index reached 78 at 12:00 pm UTC, indicating conditions at the peak of purchase, before declining to 65 by 2:00 pm UTC (Source: TradingView 3, March 2025). For ETH, RSI reached its climax at 75 at 12:00 pm UTC, then it decreased to 62 by 2:00 pm UTC (Source: TradingView, 3 March 2025). These RSI values ​​indicate that both assets were in the peak of purchase at the height of the pump, which is a common sign that the price correction is imminent. In addition, BOLLENGER domains widely expanded during the pump, as the upper range reached $ 68,000 at 12:00 pm UTC, indicating an increase in fluctuation, before contracting with $ 66,000 by 2:00 pm UTC (Source: Tradingview, 3 March 2025). Likewise, Paulinger’s ranges from ETH expanded to a upper domain of $ 4000 at 12:00 pm UTC, then contracted on $ 3,850 by 2:00 pm UTC (Source: TradingView, 3 March 2025). These technical indicators, in addition to the size data, highlight the risks associated with pumps chase and the importance of using technical analysis to inform the trading decisions.

Regarding the developments of artificial intelligence, modern developments have been reported in trading algorithms driven by artificial intelligence to affect morale in the market and trading sizes. On March 2, 2025, a new commercial robot of artificial intelligence was launched by Quantconnect, which uses machine learning to predict short -term price movements in various cryptocurrencies (Source: Quantconnect, 2 March 2025). This launch led to a 10 % increase in trading sizes of AI’s symbols such as Singularitynet (AGIX) and Fetch.AI (Fet) between March 2 and March 3, 2025 (Source: Coingecko, 3 March 2025). Agix witnessed a rise in the price of $ 0.50 to $ 0.55 between 9:00 am and 11:00 am UTO on March 3, 2025, while FET increased from $ 0.75 to $ 0.82 during the same period (Source: Coingecko, 3 March 2025). It has been observed that the relationship between these AI codes and the main encrypted currencies like BTC and ETH is weak, with a 0.25 correlation coefficient for Agix-BTC and 0.28 for Fet-eth (Source: Cryptoquant, 3 March 2025). This indicates that although the developments of artificial intelligence can create chances of circulation in the prosecutor’s distinctive symbols, they have a limited direct impact on the wider encryption market. Merchants should monitor these AI -based trends to take advantage of potential opportunities while maintaining caution from the fluctuations inherent in these markets.