Triple Sin of Liquidation: A Truth Gamblers Never Acknowledge
Leverage: A Self-Bound Noose
With 10x leverage, ETH only needs to drop 10% to trigger liquidation, while last night ETH fell from 3380 to 3160 (6.5% drop) which exploded 296 million short orders — leverage magnifies not gains, but the speed of death.
Irony: Most liquidation short orders were concentrated at a price of 3250-3300, right before dawn (this morning ETH rebounded to 3360).
Regulatory Underhanded Moves: Policy Knife
Hong Kong CMB International suddenly obtained a license yesterday, the influx of Chinese capital triggered short-seller panic selling;
The U.S. House of Representatives voted this morning (GENIUS Act), accelerating the compliance process to strangle offshore leveraged casinos
Market Structure Trap
Exchange Market Manipulation: BitMEX single liquidation of $9.93 million, suspected programmatic hammering causing a cascading avalanche.
Kimchi Premium Trap: Korean retail traders buy ETH at a 3% premium at high positions, becoming the best fuel for shorts.
Why Ethereum Became the 'King of Liquidations'
Nested Traps
Whales use L2 to unlock selling pressure (ARB, ZK single-day sell-off exceeds $47.8 million) to create panic;
Institutions secretly set a 12,000 ETH support order below 3100, quickly absorbing chips after the crash.
Fisher's Sharp Review: The Three-Piece Set for Market Makers - Creating Panic, Blowing Leverage, Low-Price Accumulation
Technical Death Triangle
Overbought RSI (74.7) + Bollinger Band Upper Limit Resistance (3400) + CME Gap Attractiveness (2830-2920)
Three Forces Encircle, Leveraged Players Become Sacrificial Victims; Retail Survival Rule: The Symbiotic Path of Fish and Whales
Position Control: The Iron Law of Three-Thirds
30% Cash Base (ETH/BTC Stabilization)
30% Grid Trading (ETH Automated Arbitrage Orders in Range 3160-3400)
30% Cash Gap (Buy the Dip at 2920 Gap)
Leverage Self-Defense Formula
Maximum Leverage Multiplier = 1 / (Daily Volatility × 2)
ETH Daily Volatility ≈ 8% → Leverage ≤ 6 times is the Lifeline
Take Profit and Stop Loss: Anti-Human Behavior Operations
Surging to 3400: Shorters take 30% profit, leveraged players hedge by buying put options (strike price 3500)
Crash Breaking 3160: Spot traders place tiered orders at 3100/3000/2920, leveraged traders cut losses to save their lives.
A true hunter never harvests wheat in a storm
When you see 450 million in liquidations, don’t fear the market, but rather the greed beast nurtured by leverage within yourself. Remember: Market makers do not use knives to kill leverage; they use the margin in your account.
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