Don't panic if you're trapped! A guide to the breakeven strategies and mindset adjustments from Crypto Veterans in the crypto world.

The crypto world is highly volatile, and being trapped is a common occurrence. The key is not to fear being trapped, but rather to know how to act and think after being trapped. Below, I will help you clarify your thoughts in the simplest way possible.

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1. First, understand: why did it drop?

A decline is not necessarily the end of the world; understanding the reasons can help you respond calmly.

· External environment impact: US stock market correction, strong US dollar, decreased risk appetite of large funds, the crypto world naturally also faces pressure.
· Internal profit-taking: ETH has risen significantly in the earlier stages, and some people choose to cash out, which is a normal correction.
· Emotional and leverage chain reaction: The area around 4494 was originally a short-term support. Once it breaks down, it is likely to trigger panic selling and a chain reaction of leveraged liquidations.

Conclusion: This drop is more about emotions + technical adjustments, not a fundamental collapse, so don't scare yourself.

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2. After being trapped, respond according to the situation.

✅ Situation 1: Light positions, mindset can withstand

· Strategy: Lying Flat + Averaging Down
· Operation:
· The current position is approaching recent lows, and the space for further decline is limited.
· Buy more every time it drops by about 50 dollars (for example, at 4480, 4450) to lower the cost.
· If it rebounds to the 4580-4600 range, there will be a chance to breakeven or even make a profit.

🟡 Situation 2: Heavily positioned, facing significant pressure

· Strategy: reduce positions on rebounds + lower costs in waves
· Operation:
· If it rebounds to the 4550-4580 range, first reduce a portion of the position to lower psychological pressure.
· Keep the remaining position for swing trading: buy back near 4500 when it drops, then sell out on the rebound, repeatedly operating to lower the average holding cost.

🔴 Situation 3: What to do if you have been liquidated?

· Step one: Take a pause
Pause trading, take a day to calm down. It's easiest to make continuous mistakes when emotions are unstable.
· Step Two: Review
Reflecting on the reasons for liquidation: was the leverage too high? Was there no stop-loss set? Was the directional judgment incorrect?
· Step Three: Replan
Liquidation is a lesson, not the end. Redefine your trading plan, and next time make sure to set a stop-loss when opening a position.

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3. What to do next?

· Short-term rebound: 4528 is a key level for bulls and bears. Once stabilized, it is expected to test the resistance zone of 4580-4600.
· Mid-term trend outlook: The logic of ETH 2.0 and ecosystem development hasn't changed, those who can hold on shouldn't easily cut losses.

Operation Suggestions:

· Trapped: Gradually breakeven according to the above strategy, don't randomly increase leverage.
· Empty positions: Build positions in batches below 4500, betting on quick rebounds for fast in and out.
· Liquidated: Take a few days off, the market will always have opportunities, but the principal needs time to recover.

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The last sentence is a heartfelt truth.

In the crypto world, it's all about mindset; sharp declines and washouts are the norm. Being trapped at 4494 is not the end; don't panic and act recklessly. Analyze calmly, respond in batches, and maintain your bottom line to wait for the day when the market warms up.