Brothers, ETH's surge of 1.15% in 5 minutes has probably made many people panic, right? I see that some people in the community have already started to crazily chase up, and there are others selling off other crypto assets to go all in on ETH. As a seasoned analyst who has seen countless retail investors lose everything due to blind operations, I must pour a bucket of cold water on everyone today: under the current market conditions, there are two types of operations that absolutely cannot be done, otherwise, you may very well let the money you worked hard to earn go to waste!
The first type of operation that should not be done: blindly chasing highs and going all in at once. Many retail investors see ETH soaring and think the bull market has arrived, fearing they will miss the opportunity, so they recklessly chase up at high prices, even putting all their funds into it. This operation is the most dangerous because a short-term surge often comes with the risk of a pullback. Just like today's rise in ETH, although it looks strong, it has already reached a key resistance level of 2865, where there are a large number of sell orders. For bulls to continue pushing, it will be very difficult. If one blindly chases highs now, once the price pulls back, they will be trapped at a high level, and because they are fully invested, there is no buffer space, they can only watch their losses expand helplessly. I have seen too many such examples; last year when ETH rose from 3000 to 4000, many people went all in at the high of 4000, and as a result, ETH later pulled back to over 2000, and they lost everything.
The second type of operation that cannot be done: losing balance due to missed opportunities, leading to haphazard purchases of other altcoins. Some retail investors, anxious for not seizing the rise of ETH, think of finding a more rising altcoin to 'make up for losses'. This mindset is a big taboo in trading! One must understand that when the market warms up, the rise of mainstream assets is logically supported, while many altcoins rise merely by following trends, without any value support. Once the market corrects, the decline of altcoins will be far greater than that of mainstream assets. Moreover, many altcoins have poor liquidity; once trapped, they can't even be sold. I had a fan who, due to missing out on the BTC trend and losing balance, bought an unknown altcoin, which ended up being worthless just a few days later, and he lost all of his 100,000 yuan investment.
Let me share some valuable insights on what the correct operation should be under the current market conditions. Firstly, control your position size, never go all in. My suggestion is to keep your position size within 50%, with the remaining 50% as backup to respond to sudden market situations. Secondly, choose mainstream assets with value support, and avoid those altcoins without any ecosystem or capital inflow. Take ETH as an example; it has strong ecosystem support and institutional capital inflow, making it valuable in the long term, even if there is a short-term correction, there is a possibility of rebound. Most of those altcoins are just capital games, and once the funds withdraw, they will become worthless.
In addition, learn to set stop-loss and take-profit levels. Stop-loss is for controlling risk, while take-profit is for securing profits. For ETH, the short-term stop-loss level can be set at 2780, and the take-profit level can be set at 2865. If the price falls below the stop-loss level, exit decisively to avoid greater losses; if the price rises to the take-profit level, you can first sell part of your position to lock in some profits, and continue to hold the remaining position to follow the trend. Remember, the core of trading is to 'preserve your capital'; only by preserving your capital can you have the opportunity to make money in the market.
Some may ask, what should I do if I am currently in cash? My suggestion is to not rush to enter the market, wait for clear signals from the market. For example, wait for ETH to break through the key resistance level of 2865, and confirm the upward trend with increasing trading volume before entering; this way, the risk is lower. If the market corrects, don't panic; you can pay attention to whether there is support in the 2750-2800 range, and if there is support, you can enter with a small position to try your luck.
Finally, I want to tell everyone that trading is a marathon, not a sprint. Do not lose balance due to short-term fluctuations; stay calm and analyze rationally. Many people do not make money in the crypto space because they are too impatient, always wanting to get rich overnight. In fact, as long as you can preserve your capital and seize a few significant market trends, you can make money.
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