On the eve of the Federal Reserve's showdown, whales have laid out a 'harvesting scheme' on Ethereum: a liquidity trap of $500 million in short positions, which side are you on?
Ethereum has currently reached a very critical position. According to data, $3,150 is an important observation point. Once successfully breached, it may trigger a chain reaction, leading to over $500 million in potential short positions being liquidated. Such a scale of concentrated liquidation usually resembles a giant wave, pushing prices to higher points in a short time.
On the other hand, the market also faces downward risks. If the price falls below $2,950, the situation may quickly turn to the other side, at which point nearly $1 billion in long positions will face immense pressure.
My view is that this data clearly reveals a fact: the current market is like walking on thin ice, with an extremely fragile balance. Whether breaking upwards or downwards, the concentrated liquidation of leveraged contracts may lead to intense and short-lived price fluctuations. This is not an ordinary technical correction, but a potential 'stampede' caused by sudden withdrawal or influx of liquidity.
For traders, it may not be the ideal time to chase trends. Near such critical price levels, market sentiment and price behavior can become extremely unstable and unpredictable. A prudent approach might be to wait for the market to clearly choose a direction, and fully release this round of liquidation pressure before reassessing the next steps. The market is never short of opportunities, but sometimes it is wiser to observe on the edge of the storm than to rush in.
Follow Tao Ge. When the market makes a choice between $3,150 and $2,950, I will interpret the direction and share response strategies at the first opportunity. Rather than guessing bullish or bearish, it is better to follow the signals.
