Single Day Triggers 'Extreme Greed'! Behind ETH's 30% Surge, Is There a Massive Short Squeeze?

In the crypto world, a day is like ten years in the human realm! Market sentiment skyrocketed to the 'Extreme Greed' zone within just 24 hours, with Ethereum (ETH) surging 30% in a single day, causing the entire market to boil. What force propelled this sudden surge? Who was frantically adding positions at high levels? The answer is shocking — no one was chasing high, but rather, short positions worth billions were 'self-igniting', triggering a chain of liquidations! Those who bet on ETH's decline at the $3000 price point now have to give back all their previous profits.

In fact, as early as late March, this column had warned about this crisis, having already noticed over $10 billion flowing into ETH short positions, which could likely trigger a violent short squeeze. It was originally expected that the short squeeze would happen in April, but unexpectedly, this storm didn't truly arrive until May.

It is worth noting that around $2425 is the key level of ETH's 0.382 golden ratio, which may form strong resistance, and the short squeeze could likely pause here. Investors holding altcoins might as well take profits and patiently wait for a price pullback. Although altcoin bull markets, once started, usually do not stop abruptly, the recent market surge has been excessive, and the risks of chasing higher prices are sharply rising, with the risk-reward ratio continuously declining. A rational approach is to wait for a pullback before re-entering the market. Taking Pepe coin as an example, if it can pull back to the $0.105 neck line and then show a rise or rebound, that would be a more reliable entry point.

Looking back at yesterday's strategy, we suggested entering Pepe coin at the $0.088 price point, and the 'tail-end surge' exceeded expectations, bringing surprising and substantial profits. If Pepe coin shows a pullback later, I plan to use the 30% profit obtained last night to add to my position while withdrawing the principal and only using the profits to continue participating in the game, which is the risk range I can accept. Of course, investment strategies vary from person to person: conservative investors could give up on the tail-end surge, and additionally, they could pay attention to Trump's hero dog Co nan, which has a strong IP and narrative worth following!