The recent movement of Ethereum on December 5th is worth pondering.

Bears clearly added a lot of positions, yet the market just made a small V-shaped rebound and then stalled—that’s quite odd. Normally, if leverage players really wanted to play, they would push the price higher to lure in more longs before dumping. But what’s happening now? The price isn’t going up, and instead, it’s just grinding around this level trying to lure in longs, but the longs aren’t taking the bait.

My take is: don’t rush to chase. Wait for a lower entry. There’s a high probability they’ll push it down again to create a cheaper opportunity to lure in longs.

Of course, if this prediction turns out to be wrong and I get stopped out, then just stay on the sidelines and wait for a real high-level signal before taking action. Don’t fight the market.