$ETH The Ethereum trend on January 15th gives us a classic example.



Initially, I planned to stop around the 3300-3315 range and had no intention of chasing higher. But the problem is— the accumulation area for the bulls is too dense, and there hasn't been a decent dip to clear out these floating positions. What does this mean? The main force is very likely trying to push the price higher to lure more longs, then form double shoulders or other top patterns, trapping retail investors before dropping the price.

Since that's the case, we can follow the trend and go long first to earn a few dozen points, then turn around and go short. Even if the short position gets stopped out, this approach won't result in a loss. Why? Because the profits from the longs are enough to cover the losses on the shorts.

Here's an important premise: if a large bullish candle breaks through 3400 directly from around 3375, then we have to admit defeat, abandon the idea of going high, and manually take profit on the longs.

Honestly, Ethereum hasn't reached a true reversal yet. Most likely, it's just a bait to lure out and shake out traders during a rebound. So, the longs here are actually just an auxiliary move to assist the shorts, helping us better perceive the market's volatility rhythm, rather than us expecting a reversal and continuously holding longs.
ETH-0,43%
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