The sharp drop of ETH last night, the author believes, was premeditated by the 'whales'. This wave of market first rose and then plummeted, resembling an inverted 'V', causing many short sellers to suffer greatly – they initially thought it would surge to 5000, but suddenly the 'whales' pushed it down to 4700, leaving both sides – longs and shorts – in a terrible state.

The 'whales' are particularly adept at 'harvesting' three types of people:

Newbies who chase highs and sell lows: Last night at 4900, there were still people shouting about a big rise, only to be stunned by the immediate drop.

Those who heavily bet on a single move: Behind the 1.393 billion short positions being liquidated, there are many who staked their entire fortune on the belief that there would definitely be a pullback.

Those who hold on without stop-loss: When the key level of 4700 was breached, many who held long positions stubbornly endured, ultimately losing everything.

Currently, ETH is around 4730, and 4700 is a critical line. The 'whales' might have even more sinister tricks up their sleeves:

If they can stabilize at 4700, there might be a short-term rebound to 4800, but don’t act impulsively – the 'whales' might slowly push the price up to entice everyone to buy in, then suddenly crash it again for another round of harvesting. If it breaks below 4700, the liquidation of long positions at 4600 would just be a minor event, but if it drops to 4500, on-chain data indicates that there could be 2.3 billion in leveraged positions that might get liquidated, causing those who are long to panic sell, much to the delight of the short sellers.

The strategy from Brother Mouth is to operate contrary to the 'whales' logic:

You can try to go long with a small position near 4730, but make sure to set a stop loss at 4700 (at most take a risk of 50 dollars). If you make a profit of 50 to 80 dollars, sell quickly – don’t be greedy, as the 'whales' might turn around and crash the market at any time. If the price breaks below 4700 on the hourly chart, don’t hesitate, just go short, targeting 4600.