Another 'Understanding King' has fallen!
Look at this unfortunate soul. He chased into ETH at its peak with a full position, losing $3.24 million in just 14 hours. Now he still holds over 11,000 ETH long positions, with a floating loss of over $2.6 million; this is basically a live lever slaughter scene.
I tell you, this is not just his tragedy. The entire market is deflating today, with the price of Ethereum having dropped below $3,200, a nearly 4% drop in one day. From Bitcoin to various altcoins, it’s all a sea of red. This is a typical case of 'FOMO chasing the rise, panic cutting losses'; I’ve seen this script too many times.
In my view, this event has sounded the loudest alarm for retail investors: in a market dominated by institutions, playing high leverage with retail emotions is just giving free lunch to the whales. Look at what the institutions are doing now. They are either steadily positioning themselves or calmly buying the dip during market panic. And what about many retail investors? They see a rise and crazily increase their leverage to jump in, and a slight tremor in the market leads to a series of liquidations, driving the decline even deeper. The money you earn based on luck and adrenaline will ultimately be lost back through strength and liquidation.
So what impact does this have on the market going forward? It’s simple: such massive liquidations will quickly clear the market's leverage bubble, causing prices to drop significantly. But this process is very brutal; many people's capital simply cannot withstand such volatility.
So, what should retail investors do now? Listen to me in three plain statements:
First, reduce leverage, or even don’t use leverage at all. Living longer is a thousand times more important than making money quickly.
Second, don’t bet your life savings on short-term contracts. Use a portion of your funds for spot trading, holding core assets like Bitcoin and Ethereum for the long term will stabilize your mindset.
Third, don’t stare at KOLs shouting orders every day. Learn to look at on-chain data and market sentiment yourself, and break free from 'gambling thinking'.
If you keep repeating the script of chasing highs and cutting lows, you will always be fuel for the market, not a winner. Want to know how to establish a position strategy that can attack and defend in the current volatile market? Follow me, and I’ll provide you with solid content in the next article.
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