Cryptocurrency Market Soars! ETH Surges 30% in One Day, Over 10 Billion in Short Positions Liquidated in a Shocking Drama

The cryptocurrency market has undergone a dramatic change, leaving people speechless! In just one day, the market has plunged into an atmosphere of extreme greed. The most eye-catching event is Ethereum (ETH) soaring like a wild horse, with prices skyrocketing by 30%. But can this crazy upward trend continue? Who is frantically chasing higher prices?

In fact, no one dares to chase higher prices rashly! This is all because of the enormous short-selling power exceeding 10 billion that is in turmoil, triggering a series of massive liquidation tragedies. These short sellers stirred up trouble when prices were around 3000, and now they can be said to be shooting themselves in the foot, likely losing all their previous gains!

Let's look back to late March when we first noticed this event; back then, due to oversight, the numbers were written incorrectly. In reality, there were tens of billions of dollars in funds aggressively shorting ETH, which indicated that a strong short squeeze storm was likely to come. Originally, it was thought that shorts would face a severe blow in April, but unexpectedly, this drama was postponed until May to officially kick off.

However, investors should keep their eyes wide open. ETH has a critical 0.382 Fibonacci retracement level around 2425, which presents significant resistance. The short squeeze may encounter a bottleneck here, leading to stagnation. Friends who have positioned in altcoins may want to take profits at this time and wait for a pullback before making further plans.

Although it is said that when the altcoin season comes, it usually doesn't last briefly, this time the surge of ETH is indeed exaggerated, and the risks of chasing higher prices are rising sharply, with the risk-reward ratio gradually deteriorating. Therefore, a more rational operation would be to wait for a pullback and adjustment before positioning. Taking Pepe as an example, it would be wise to wait for a pullback to the neckline around 0.0000105 before launching a rally or rebound.