"The more insane the institutions are in shorting, the more astonishing the market explosion will be!" - Opportunities are always born in despair in the market.
In-depth analysis of the news
The event of "institutions massively shorting ETH" exposed by Yi Lihua is far from simple on the surface. Analyzing institutional behavior, when multiple platforms short simultaneously, it often indicates that market sentiment has reached a freezing point, which is precisely the darkest moment before dawn.
It is worth noting that he specifically mentioned that "after November, we may usher in a greenhouse market," which implies important information: the current shorting data is close to historical extremes, and the combined force of the expansion of stablecoin tracks, the potential passing of ETFs, and the improvement of the policy environment will far exceed the fundamentals of the 2017 bull market.
Institutions are heavily shorting at this time, likely to lay the groundwork for future low-level accumulation. This 'clear short and actual long' trading strategy is not uncommon on Wall Street.
Precise interpretation of technical analysis
The chart shows that ETH has strong support at the key level of 2900. Although the MACD shows a death cross, it remains above the zero line, which is a typical signal of bullish consolidation.
More subtly, the current price is forming a 'converging triangle' in the range of 2900-2980, with volatility dropping to an annual low, indicating a forthcoming directional choice.
The three resistance levels above are showing a stepped distribution. Once it breaks through 2980, it will trigger short stop-loss orders. I have already prepared detailed breakout strategies for the two key levels of 3150 and 3260 in the private domain.
Mig's professional opinion
According to the current technical analysis, ETH maintains a bull-dominated trend. A pullback to 2860 can be a good opportunity to go long with small positions. If a spike occurs in the range of 2760-2700, one can establish long positions here. If 2900 holds, we can continue to look for a rebound, with the first target at 2980. After a breakout, we will look towards the range of 3150-3200.
Market analysis is 'planning', but the chart is 'real combat'. If you always feel one step behind the market, and it's always 'buying leads to drops, selling leads to rises', let me tell you, you don't lack analysis, you lack a professional guide who can remind you in real-time that 'opportunity is coming' and 'run fast'!
Want to know how I, Mig, led my brothers in the village to dodge spikes and set ambushes precisely? Follow Mig and join every attack from the villagers! Mig will announce specific entry times and real-time news every day in the village!
