The scythe of the crypto circle cuts through luck—last night ETH had a V-shaped reversal, with a double kill of $1.393 billion in shorts and $1.121 billion in longs, and the market makers played their tricks clearly!
From $4957 to $4700: a carefully designed 'double killing of long and short.'
At 8 PM last night, ETH seemed to have been pressed the start button, slowly climbing; by 2:40 AM, the price skyrocketed to $4957, hitting a new historical high. This surge, on the surface, appears to be a technical breakthrough, but behind it lies the market makers' precise 'liquidation harvesting.'
According to Coinglass data: If ETH breaks through $4900, the short liquidation intensity in mainstream CEX reaches $1.393 billion—this is equivalent to setting a 'death trap' for the bears. When the price surged to $4957, a large number of short positions were forcibly liquidated, forcing the bears to chase long positions at a high price, instantly igniting market sentiment.
But the game of the market makers has just begun. Just when you think it will break $5000, ETH suddenly turns down, and by 8:40 AM, it directly falls below $4700. At this point, another set of data lights up: if it falls below $4700, the long liquidation intensity reaches $1.121 billion; if it falls below $4600, the long liquidation intensity is still $726 million. This means that retail traders chasing long positions are trapped at high prices, while the market makers take advantage of the drop to harvest another wave of longs.
This is the 'double killing of long and short' in the crypto circle: the rise makes you think it will break through, clearing out shorts; then the crash makes you think it will collapse, clearing out longs. The market makers are in the middle, making a fortune.
Key position $4700: today's life-and-death line for longs and shorts.
Currently, the ETH price is around $4730, but the real battleground is at $4700. Why is this position important?
$4700 is a key support level from the previous period, and if it falls below, it turns into a short-term resistance level. If the 1-hour line cannot stabilize at $4700, market confidence will be further shaken;
Below $4700 is the intensive area for long liquidations at $4600. Once it falls below $4600, panic sentiment may spread, potentially triggering a chain sell-off.
In simple terms: $4700 is the 'line of demarcation' for longs and shorts. If it stabilizes, it may rebound to test $4800-$4900; if it falls below, it will head straight for $4600, or even deeper corrections.
Qing Yao's strategy: enter longs with light positions, or wait for signals to chase shorts.
Faced with this 'market maker-controlled' market, what should retail traders do? Qing Yao's strategy is very clear:
Enter longs with light positions near $4700: if the price stabilizes around $4700, you can try long with a light position, setting a stop loss at $4660 (falling below $4660 indicates support failure). Aim for $4750-$4800 to profit from a rebound;
If the 1-hour line cannot stabilize at $4700, directly chase shorts: if the price continues to fluctuate below $4700, or even falls below $4680, you can follow the trend to chase shorts, aiming for $4600. A rebound may occur here, but be cautious of risks.
Remember: there is no 'absolute' in the crypto circle, only 'probability.' Market makers are best at 'countering human nature,' so you must control your position and not run out of bullets.
Follow Qing Yao, who will help you dismantle the market makers' 'scythe,' from the long-short game to the methods of market makers, helping you turn 'unfathomable market conditions' into 'graspable opportunities,' so you can dance on the edge of a knife and even turn the tables on the market makers.
