Today, we will discuss short-term trading strategies for ETH and SOL. The core idea is to focus on breakout of ranges, prioritize buying on dips, and be cautious about chasing highs. Position size and leverage must be strictly controlled, especially for small accounts, which should also set stop-losses as a bottom line.

**Market Overview (2026-01-02 08:30, UTC+8)**

ETH is currently around 2980, facing resistance in the 3000-3030 zone. Support levels are at 2950-2920. The overall trend is bearish, moving within a volatile downward channel. SOL is around 125, with resistance at 126-128 above and support at 122-120 below. The rebound strength is weak, and trading volume is noticeably insufficient. In terms of capital flow, ETH-related products are mainly flowing out, while on-chain activity for SOL remains decent. The market is still primarily driven by on-exchange funds.

**How to Trade ETH Contracts**

The strategy is to look for range breakouts combined with buying on dips; if the price breaks down, switch to short. Risk per trade should be controlled within 1-2% of the account, with leverage of 3-5x.

For long positions, wait for ETH to dip to 2950-2960 to enter gradually, with a stop-loss at 2920 (the lower support). The target is the resistance zone at 3000-3020. When reached, reduce positions and move the stop-loss above the cost basis to lock in profits. For short positions, the logic is reversed: try a small short when rebounding to 3000-3010, with a stop-loss at 3035 (upper 200EMA). Target 2960-2950, and exit quickly once reached to avoid entanglement. If volume breaks above 3030, wait for a pullback to 3010-3020 to add longs with a stop-loss at 2990; if volume breaks below 2920, look for a rebound at 2940-2950 to add shorts with a stop-loss at 2970.

**SOL Short-term Trading**

SOL currently shows weak rebound strength. Use a strategy of selling on weak rebounds and buying on dips, strictly holding the 120 support level. Use 3x leverage, with single trade size not exceeding 15% of the account.

For longs, buy lightly on dips to 122-123, with a stop-loss at 120 (key support), and take profit at 126-127, gradually cashing out. For shorts, when rebounding to 126-127, open small short positions with a stop-loss at 128.5, targeting 123-122, and exit quickly once targets are hit. If volume breaks above 128 with increased volume, wait for a pullback to 127 to add longs with a stop-loss at 125; if volume breaks below 120, look for a rebound at 121-122 to add shorts with a stop-loss at 123.5.

**Risk Management Tips**

For leverage, ETH and SOL should be kept at 3-5x. Small accounts should never use more than 10x leverage, as volatility can easily lead to liquidation. Stop-losses must be strictly enforced: for longs, place stops below support; for shorts, above resistance. Never manually cancel stop-loss orders. Keep single position sizes within 10-15%, and use layered entries (e.g., 3, 3, and 4 parts) to reserve funds for volatility and re-entries. Avoid trading during the low-liquidity window from 2-4 AM. Prioritize trading during European and US market openings. Limit intra-day trades to no more than 3 times to prevent chaos. When targets are reached, reduce positions immediately and use trailing stops to lock in profits—avoid holding positions through large swings.