The recent market pullback has indeed made people anxious. Ethereum between 2450-2550 is a highly cost-effective 'golden pit'.
As the saying goes, 'When others panic, I am greedy.'
Why are we bold enough to heavily invest at this position?
1. Gambling on the extreme reversal of the sentiment regarding 'yen interest rate hikes'.
The current decline is essentially an overreaction of the market to the Bank of Japan's (BOJ) interest rate hike expectations.
* Current situation: In order to curb inflation, Japan has to tighten monetary policy, forcing those who borrowed cheap yen to buy cryptocurrencies to close their positions and bring funds back. This has caused a short-term liquidity drain.
* My understanding: This kind of crash triggered by macro sentiment often pushes prices below the fundamentals. The position between 2450-2550 has already wiped out this panic sentiment cleanly, even leading to mispricing. Once the interest rate hike in Japan is confirmed, or the market recognizes that bad news is fully priced in, the rebound of this sentiment will be extremely fierce.
2. Institutions are 'openly fixing the bridge while secretly crossing the river'.
You may see the exchange's position data flowing out, but this is often a smokescreen by institutions.
* Logic: Big funds prefer to use macroeconomic bad news to smash the market and accumulate positions. The more the current spot price is suppressed, the more cheap chips institutions can acquire on the chain.
* Support level: The 2500 integer level is not only a psychological barrier but also a strong technical support. Being bold enough to invest here is a bet against the market, wagering on mean reversion.
Operational strategy: How to 'increase position' most stably?
Since we have decided to act, we cannot rely solely on enthusiasm; we must be strategic in our deployment.
* Stage one: Enter in batches (2450-2550)
* Do not go all in at once. The market fluctuations are large, it is advisable to enter in 3-4 batches.
* Try to enter with 20% position near 2550 and observe the market's ability to absorb.
* If it drops to the psychological level of 2500, increase the position to 50-60%.
* In extreme cases, if it reaches 2450 (which is almost an impossible golden pit), directly heavily invest or even fully ambush, as the profit-loss ratio at that time is extremely high.
* Stage two: Target locked (2900-3100)
* The target range is very precise. 2900 is a strong resistance level in the short term, while 3100 is the previous peak of consolidation.
* At this position, if the volume is insufficient or there is a stagnation in growth, it is advisable to take profits in batches for safety. After all, in short-term trading, it’s best to take profits while you can, preserving your resources for future opportunities.
* Stage three: Spot trading is the way to go
* Those with more capital should go for spot trading directly. In this volatile market, spot trading is the safest asset. As long as the coins are still in hand, there's no fear of them not rising. Avoid playing with high leverage, as it is easy to get shaken out at this position.
Summary
Take advantage of the liquidity vacuum brought by Japan's interest rate hike to seek a violent rebound after the panic.
"The darkest hour is often just before dawn, but it is also closest to the light."
Ethereum now is like a boxer knocked down by a heavy punch, although it is swaying, the referee has not yet counted to ten. Support it at this position, and when it stands up to counterattack, you will be the biggest winner.
Wishing us a successful heavy investment this time, coming back loaded! Remember to set stop losses, protecting the principal is protecting the spark of the revolution.
