Okay, folks! Were you scared last night by ETH's 'midnight plunge of $300'? Don't panic! 'Whales dumping at midnight, technical levels breached, panic is the real harvesting machine for retail investors!' Let me use the most straightforward words to unveil the truth behind this crash and protect your wallet!
Last night's tragedy recap:
Time: Late at night, when you're sleeping soundly.
Event: ETH crashed from $2679 to $2379! A total of $300 lost!
Consequences: The phone alarms went off everywhere, countless people opened their accounts—instant heart attacks! A large chunk of hard-earned money evaporated!
First reaction: Did the American debt collapse? Wrong! The timeline doesn't match!
Yellen's call for 'medication' was during the day in the US (midnight for us), and at that time, the market shook a bit, but nothing major happened.
The real bloodbath for ETH happened later (at our midnight), and at that time the US stock market was only down 0.5%, it wasn't a global collapse at all!
Conclusion: Don't blindly shift blame! This wave is just ETH's own backyard on fire, not much related to the outside!
True culprit one: A giant whale launched a surprise attack at midnight!
On-chain evidence: Before the crash, a mysterious big shot secretly transferred 18,000 ETH (worth $45 million!) to the exchange, clearly prepping to sell!
A fatal blow: At 12:29 AM, a sell order of 106 ETH (worth $260,000) crashed in. In a 'ghost market' with few traders at midnight, this order was like dropping a bomb in a small pond! Instantly triggered panic selling!
Let me say something harsh: When whales want to sell, they choose to dump when you're asleep, at the most vulnerable time for the market, just to bully slow-reacting retail investors with high leverage! Insidious!
True culprit two: Technical levels breached, triggering an avalanche!
$2500, what's that? That's ETH's 'Maginot Line' (Fibonacci 78.8% support level), a psychological barrier for countless technical analysts and bulls!
When a whale dumps, the defense line collapses instantly:
Programmatic trading stop-loss orders are triggered like dominoes (machines aren't afraid, they cut losses without hesitation).
Retail investors see a broken position? 'Run!' Panic selling follows.
The worst hit are high-leverage bulls, who were directly liquidated in a chain reaction! (Liquidation orders continue to hammer down, creating a vicious cycle!)
Result: A $300 hole just appeared! Once the technical level broke, panic emotions amplified tenfold!
How bad was the scene? Leverage players had nothing left!
Here's an example: If you used 10x leverage to go long at $2600, this wave could directly lead to your liquidation! You'd lose everything!
Real data: Last night, ETH contracts were liquidated for $120 million! Over 30,000 people queued on the rooftop! A sight too horrible to behold!
I feel pained just watching: Playing with high leverage and encountering such a midnight surprise is truly a case of calling for help and getting no response! Leverage is a double-edged sword, but most of the time it cuts yourself!
Spot players, don't panic! You're just experiencing a 'paper wealth' shrinkage!
From 2679 to 2379, a paper loss of 11%, which hurts, but the coin is still here!
Think back to the beginning of the year: ETH rose from $1600 to over $2600, still making over 60% profit this year! Why panic?
Historical data: ETH has more than 20 single-day drops exceeding 10% each year, didn't it all bounce back later? Rapid drops and slow rises are the norm!
The truth behind the crash & why you shouldn't be afraid?
It's not the end of the world: ETH itself 'took a hit', but the global market is stable!
Daily life in crypto: ETH inherently has large fluctuations, up or down over 10% in a day, so don't be surprised! Get used to it.
The foundation is still intact! DeFi, NFT, Layer 2 (Cancun upgrade) are all developing healthily, and ETH is still the same ETH!
Is a crash actually a good thing? (Looking at it from a different angle)
Wash away floating capital: Shake out those high-leverage gamblers and fence-sitters who can't hold, making the chips cleaner!
Here’s your opportunity: If you've always thought it was too expensive and didn't get in, now's the sale! In the long run, it's a good opportunity.
Risk release: Once the panic is vented, the market can operate lightly.
A survival guide for ordinary retail investors (Take notes!)
Leverage players:
High leverage (over 10x), close your positions quickly! Now! Right away! Only by staying alive can you have output!
Raise the margin rate to over 50% to give yourself some buffer.
Remember: The first rule of survival in the crypto world—stay alive first!
Spot players:
Don't panic and sell at a loss! As long as your logic for buying ETH hasn't changed (believing in the future of blockchain), just hold on!
Don't rush to ALL IN and catch the bottom! Wait for the market to stabilize, and the panic to dissipate before proceeding.
Want to increase your position? You can buy in batches, for example, buy 10% of your position every $100 drop to lower costs.
Keep your hands off and control your money:
Only use spare money to play! If you lose it all, it shouldn't affect your meals!
Don't exceed 30% of total assets in crypto! Keep ETH positions below 50% of crypto holdings! Diversify risks!
Information filtering:
Keep an eye on on-chain data! (Whale transfers, inflows to exchanges, are a thousand times more reliable than rumors!)
Look at the technical indicators! (Support levels, resistance levels, MACD, RSI, for auxiliary judgment).
Stay away from clickbait! Terms like 'crash' and 'zero' are just for creating panic and have no real value!
History tells you: surprises often follow a crash!
June 2022, a halving crash? Up 300% in 2023!
A 30% drop in October 2023? It could break previous highs directly in 2024!
A 25% drop in May 2024? It could double in 3 months!
Rule: A rapid drop driven by emotions is often a 'golden pit'! But the premise is—you need to be present! Capital must be there!
Not following me? Next time there’s a crash, you’ll be queuing on the rooftop again.
