ETH traders trapped long & short

24 Des 2022

Once they trap you, they will not release you easily. You can see on the Ethereum four hour chart that they trapped a lot of traders short who were expecting further downside after the big drop. Those that have not been liquidated have been trapped and paying interest for days already and that could easily turn into weeks or more.

It took only three 4 hour candles to liquidate a huge number of longs and shorts after 50+ hours of sideways price action from the 21st to the 23rd of December. Since then, they seem to have been trapping traders long. It's way to soon to release those traders from their misery and that's why I believe they will ever so slowly take price lower towards the 1190 level.

1186 is the lowest they can go without breaking structure so I expect them to consolidate around the 1190 level for quite a while. This will give max pain to the trapped traders as well as plenty of time for gamblers to place their bets long or short.

I will close all trades once price reaches that manipulation zone and wait for them to make their next move. The patterns look solid on the daily and 4hr charts for ETH to move into rise level 2 so I am favoring higher prices.

Remember, the people behind this crypto casino will be on their yachts until the New Year, so it's just you and the algorithm. If you have studied it for even half the amount of time that I have, then you should be confident about going head to head with it at times like this. Enjoy!

25 Des 2022

Catatan

They are up to something. ETH has been going sideways now for over 50 hours so a fast move seems imminent.

I think they will be happy with the amount of time that the longs have been trapped. If more traders have gone short than have gone long in the last 50+ hours, then they will move very quickly up to the next level - liquidating all the shorts in the process.

They may or may not do a stop hunt low to liquidate the longs before quickly moving higher.

My guess is that they will make their moves around the New York open time. Yes, I know it's Xmas day and NY doesn't 'open' today, but remember that the algorithm is currently running the show. I've seen it get volatile many times before on weekends and holidays, so I won't be surprised if it happens again today.

26 Des 2022

Catatan

It seems like they are not done in this Manipulation Zone just yet. If you think that price moves up and down based on buy/sell pressure then hit that back button right now - this update is not for you.

The 1hr candle that dropped to 1192 and then snapped back up to 1213 leaves us a very fitting reminder of just how awesome their crypto algorithm is. The drop down enticed traders to go short while at the same time took out the stop losses and liquidation points of the longs. Just when the shorts were getting comfortable with their trades, they snapped price rapidly back up to liquidate them.

The next four hourly candles took price slowly lower presenting a new opportunity to go short. Then came the magic candle that sucked in the shorts on it's way down to 1194. Once again, they quickly snapped price all the way back up to take out the short liquidation points. Who would enter short after that?

Supply and demand? Bulls and Bears? Buy and Sell pressure? I don't think so!

This is the work of a finely tuned software algorithm that has been developed over many decades by the smartest financial minds on the planet. I understand that statement goes against everything you have ever learned about trading and that 99 out of 100 people reading this will completely reject it. If you are that one in a hundred critical thinker out there, then please let me know in the comments.

In summary, the fast move higher is now even more imminent. Let's be patient ;-)

27 Des 2022

Catatan

The last couple of hours have finally shown us some movement and we may find out in the next hour or two how high they intend to take the price of Ethereum.

We are on level 3 on both the 1hr and 4hr charts. Wave traders would say we are on wave 5. The peak of level 2 at 1236 was only 6 points higher than the peak of level 1. If they do not have interest in taking us up to the 1270-1280 zone then they may only take us a few points above 1236 before heading back down. The 200 SMA is sitting around 1240 so don't be surprised if they bounce off it and commence with a double or triple top peak formation.

I will be taking small profits and closing 50-75% of my longs from 1237 to 1240. They should make their intentions clear around that zone so let's wait and see what they do.