The Market is Completely Crazy: The Billion-Dollar Short Squeeze and the Truth Behind Ethereum's Violent Surge

The sentiment in the cryptocurrency market has skyrocketed from freezing point to boiling point in just a few days, with Ethereum's epic 30% surge being anything but retail-driven. The true driving force is the short-selling institutions on Wall Street — they started positioning their short orders as early as $3000, and now they are being forced into a collective liquidation by the market, with these forced liquidations becoming the fuel that drives prices up.

This is not a simple bull market rebound, but a multi-billion-dollar short squeeze spectacle. The market originally expected an explosion in April, but the real showdown didn’t arrive until May. Technically, $2425 is a key Fibonacci level for Ethereum, where shorts will inevitably resist fiercely; blindly chasing the increase is akin to licking blood from a blade.

Altcoin Frenzy, But Risks Are at Their Limit

The altcoins that are rising in tandem may seem enticing, but the risk-to-reward ratio is rapidly deteriorating. It is advised that short-term profit-takers lock in their gains in time and wait for the market to catch its breath before seeking new opportunities. The real altcoin season won’t end in a day, but the current surge has pushed risks to a critical point.

Taking PEPE as an example, if the price can pull back to around 0.105 and stabilize, there may still be a chance for a second surge. However, before that, a more prudent strategy is to lock in profits and continue to play with only the gains, withdrawing the principal. This way, even if the market reverses, the losses will only be from the money the market gave away.

Survival Rules in a Bull Market: Be Bold and Careful, Hit the Rhythm Right

The crypto sphere is never short of wealth myths, but in the end, it is always those who know how to control risk that survive. Want a piece of the pie in a frenzied market? The key lies in precisely positioning for the main upward wave, rather than blindly chasing price increases and selling off.