From this Ethereum liquidation chart, there are several details worth our attention:

1️⃣ The upper resistance zone is obvious, with a layered short positioning area.

In the chart, we can see multiple high-density liquidation zones (the brighter the green to yellow area, the more short positions). This indicates that previously, long positions were suppressed by short sellers as the price surged, and many chose to go short here, leaving a large number of unclosed short positions.

As long as the price tests this area again, the main players may intentionally push the price up to trigger the stop-loss of these shorts, completing a 'short squeeze' and pushing the price up in the short term.

2️⃣ The lower support zone is also clear, with long funds ready to take over at any time.

In the 3650 ~ 3700 range, we can similarly see a clear concentration of liquidation zones, indicating that this is the focal point of the battle between bulls and bears, with many longs placing stop-loss and margin call orders here. Once the price drops back to this area, funds have the opportunity to quickly absorb it, forming a rebound.

3️⃣ The current market is in a strong oscillation phase, with significant volatility still ahead.

Overall, ETH has oscillated down from the high of around 3900 to the 3650 range, showing a clear retracement pattern. However, from the distribution of liquidation zones, the concentrated short area has not been completely 'cleaned out', and the main players are likely to create a spike using news or market fluctuations to wash out shorts before crashing down to wash out longs, following the standard 'short squeeze - push up - crash - wash out longs' strategy.

📌 Brief commentary on operation strategy:

✅ Short term:

If you previously had long positions at lower levels, you can partially reduce your positions near 3700. If there is a volume breakthrough above 3800, you can keep your position to see the opportunity for a short squeeze.

✅ Medium term:

If there is a stabilization signal when retracing to 3650 ~ 3680, you can still continue to position yourself, but keep an eye on stop-loss below 3600.

✅ Risk warning:

The heat map clearly shows that both bulls and bears are battling in the same range, with high volatility; don’t go all in. Follow the trend, it's better to miss an opportunity than to hold on stubbornly.

Don’t just focus on the K-line; seeing whose position the main players want to blow up is the key to truly understanding the market.

If you don’t want to keep spinning in place, Uncle Nan will help you flip your position! The current market is a great opportunity for recovery and flipping positions.

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