$ETH
I'm really fed up, I've been watching ETH's market for three days and nights, helplessly seeing it crash from over 2000 all the way down. So many people were fooled by the news of a whale that had been dormant for three years adding to their position, now stuck above 1700 with nowhere to cry. Let's first look at the most reliable 30-minute indicator: the three moving averages have all aligned into a bearish formation, with the MA20 firmly pressing down on the current price at 1685.18. The super trend line is like a solid wall at 1718.48, making it hard for the price to even touch it. Although the MACD shows a tiny, pitiful red bar, it remains below the zero line and can't lift its head. The volume during the decline was enormous, but the recent rebound volume is negligible, clearly showing that the main players are using the whale news to pump and dump. This rebound is just to attract more retail investors to buy the dip.
From my nearly ten years of experience trading Ethereum, this whale adding to their position is a carefully planned bull trap by the main players. Think about it, if there really was big money entering to buy the dip, would they announce it loudly? They would have quietly accumulated long ago, not publicly reveal their cost basis at $1683, letting retail investors follow and buy the dip. I watched the order book closely after the news came out, and there were dense sell orders above 1700. Whenever the price tried to surge, tens of thousands of sell orders would immediately hit, giving bulls no chance to fight back. I've seen this pattern too many times: good news turns into bad news, followed by a long, slow decline that traps all the retail investors who chased the highs, forcing them to cut losses slowly.
Here's a rule many find mysterious but has proven true with Ethereum every time: the recent high of 2008.53 sounds like "2000 to make me scatter" in Chinese, meaning "you all have made money, now I should run." This is the clearest top signal in crypto, without exception. Also, the drop from the high has lasted exactly five trading days, and five is an important pivot number in the Fibonacci sequence. Unfortunately, this time it signals a downward pivot, not upward. Plus, today is Friday, and I don't need to say more about Ethereum's Friday curse—eight out of ten Fridays see a drop, especially in a downtrend, when Fridays tend to fall even harder. The low at 1620.06 looks like support but is actually the weakest point because countless retail investors have stop losses there. If it breaks, it will trigger a chain reaction and a stampede of selling, causing the price to fall much faster than now.
To put it in a medical metaphor everyone can understand, Ethereum now is like a patient with a severe cold that has developed pneumonia. The previous surge from 1500 to over 2000 has already drained its vitality. The whale adding to their position is just like giving it a fever reducer shot, making it look temporarily better but not solving the root problem. Its lungs are still full of inflammation—that is, massive trapped and profit-taking positions that need a long recovery, meaning a sustained decline to digest this selling pressure. Expecting it to immediately stand up and run, or even run back above 2000, is unrealistic. Forcing it to exert strength will only worsen its condition.
My own live trades are completely transparent: I opened a short position near 1680, decisively entering when the price hit resistance at the MA20 line during the rebound. I'm holding with floating profit now. The first take-profit target is 1580; once reached, I will close half the position to lock in gains. The remaining position will aim for the key support at 1520, with a stop loss set uniformly at 1720. If the price truly breaks above this level abnormally, I will accept the loss and exit, no stubborn holding.
Many will argue that Ethereum is the leading public chain and bullish long-term, citing the Cancun upgrade and ETF approvals pushing prices higher. I know all that. I'm not saying Ethereum will never rise again. I'm just saying that at this moment, the short-term downside risk far outweighs the upside potential. Long-term trends and short-term movements are completely different. If you're a long-term holder, you can ignore my view. But if you're trading short-term, now is definitely not a good time to go long. The market is always a place of bulls and bears with differing views. You have your opinion, I have my trades, and no one can convince the other. Anyway, I've clearly laid out my thoughts and live trade levels here. Profits and losses are your own choice; don't blame others if you lose later.