ETH fell over 7% in a single day, how should we respond to long orders above 3000?

This morning, ETH quickly dropped from 3040 to around 2805, with a daily retracement of 235 points. Many traders who established long orders above 3000 are currently facing significant unrealized losses. In the face of such sudden market movements, calm analysis is more important than emotional trading.

The technical aspect has turned, but don't rush to cut your losses.

The 1-hour chart shows that the price has fallen below the recent consolidation range's lower boundary, and the MACD indicator has formed a death cross accompanied by an increase in trading volume, indicating a clear short-term bearish signal. However, directly stopping losses now may just cut at the phase low. If a rebound occurs to the 2840-2860 area, this will be the first opportunity to consider reducing positions.

Graded handling of trapped positions

Situation of being trapped in a light position: Consider slightly increasing the position in the range of 2780-2800 to lower the holding cost, and wait for a rebound to the vicinity of 2880-2900 to reduce the holdings in batches.

The situation of being heavily invested and stuck: it is essential to strictly control risks. Once the price rebounds above 2850, you should gradually cut losses and never expect to turn a profit all at once.

Key support levels need to be closely monitored.

The area between 2750-2700 below is an important support zone. If this position is broken with increased volume, it may trigger an accelerated fall. Traders holding trapped positions need to closely monitor the height of each rebound to seize the opportunity to reduce their positions.

At this point in the market, relying on intuition to hold on often won't work. The fundamental reason many people are deeply trapped is that they didn't prepare a risk management plan before entering the market. In the crypto market, learning to identify signals and planning responses in advance is far more effective than remedying the situation afterward. Against the backdrop of the Federal Reserve's policy shift, volatility may continue to amplify, so managing the risks of each trade is the key to long-term survival.