2025/7/5 Ethereum market analysis

The current downward trend is a trap for shorts. The data for small-scale short positions entering the market is significant, and mainly involves leverage of 50x to 100x, with a clearance probability close to 100%. The key liquidation level is around 2620. Additionally, the rebound information from the bottom of the market is not strong, which makes bulls reluctant to enter frequently. Therefore, a pullback presents an opportunity. At the very least, it can be confirmed that (even if there is going to be a drop, the 2580-2620 range needs to be washed out once more).
If you don't want to go long, you can wait to short around 2620, or build a short position in batches at 2580, but do not chase the short at this position, as the profit potential is very small and the risk you need to take is relatively high, and the risk-reward ratio is not proportional.
Referencing the large-scale 4-hour, 8-hour, and 12-hour naked K patterns of Ethereum, there has not been a downward trend formed, so now is not the best time to short; instead, it may be worth attempting a swing long position.
Recently, the entry rate of ETH short positions has been high. We need to repeatedly oscillate to appropriately control the short sentiment before a significant drop occurs. Follow us to learn more, with timely strategy sharing and updates to help you navigate the crypto space.
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