From TradingView · · 1m 20s
Why I shorted Ethereum into a 9% rally
A trader fades an inflation-fueled ETH pop at resistance, banks 2.25%, and explains why he still likes the upside.
In brief
A trader fades an inflation-fueled ETH pop at resistance, banks 2.25%, and explains why he still likes the upside. A rally without volume behind it is not a breakout yet, so a fade at known resistance can pay even when you are bullish long term. Originally reported by TradingView.
A 9% pop that felt off
ETH jumped about 9% after the latest U.S. inflation print. Instead of chasing the move, the trader read it as a short-term selling chance.
“Ethereum's sharp move after the latest U.S. inflation data surprised me.”
Short at $2,613
He opened a short once ETH reached $2,613, betting the spike had run past what the chart could support.
Resistance was the whole thesis
The $2,567 area kept capping price. ETH could not push decisively above it, and he wanted heavier volume before calling it a real breakout.
“I wanted to see stronger volume before treating the move as a valid breakout.”
Counter-trading inside an uptrend
The trade was a deliberate fade against a market still trending up, closed at $2,551 for roughly 2.25%. It was a paper trade on TradingView.
“My strategy was simply counter-trading within the broader uptrend.”
Still bullish underneath
Reuters flagged a bull-flag pattern on ETH with room toward $3,050 if resistance gives way. The short was tactical, not a call for a crash.
The Fed still sets the tone
Crypto stays hostage to rate policy and Treasury yields. Bitcoin slid back toward $77,000 as rate-hike worries built, so caution beats chasing.
“Until then, I prefer caution over chasing the rally.”
The short version
A rally without volume behind it is not a breakout yet, so a fade at known resistance can pay even when you are bullish long term.
