Ethereum (ETH) Continues To Offer Favorable Entry Points For Short Sellers

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Ethereum (ETH) has to be the short seller’s favorite cryptocurrency. The funding rates are very favorable most of the times and the opportunities to enter shorts are endless. You just need to have a good understanding of market psychology. Just as you would be interested in dollar cost averaging your entries in Bitcoin (BTC), I think ETH/USD is offering good opportunities to short sell if you want to dollar cost average your entries. For position traders that have been short selling at much higher levels, these opportunities are a godsend as they keep adding to their shorts when the price rises. This is no different than buying in small quantities when you are bullish. The principle is the same if you don’t have a bullish or bearish but a trader’s mindset.

Professional traders don’t worry about their stops being hit or being shaken out of their positions. They know these games. Speaking for myself, I would say I’ve had lots of practice catching tops and bottoms although that is not something I believe in, but traders don’t like leaving money on the table. So, when we have opportunities like these when the price makes a fake pump to the upside, it is always a good day for position traders to add to their shorts. If the rates are favorable as they are now i.e. 0.074% then that’s even better because you get paid for keeping your positions open without exposing yourself to risk as your stops are placed way higher as you entered the trade at a much higher point. If you can supplement that with Ethereum options then that’s even better but for that I recommend having prior experience trading options.

https://cryptodaily.co.uk/
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I like big pictures because they never lie. The daily chart for Ethereum Dominance (ETH.D) is all I need to ascertain what is really happening with Ethereum (ETH) despite all the fake pumps short term. One thing I would like to mention is that good traders turn every bad situation to their advantage. For instance, if you are short selling the market and you see pumps like these, as a retail trader you would be worried but as a professional trader you are thinking about how to exploit this situation and use it to your advantage. That could be adding to your shorts, hedging your positions or whatever your strategy or need is at that point in time.

In my opinion, being bullish or bearish is not important at all as it makes no difference. There is a saying on Wall Street that bulls make money, bears make money but the sheep get slaughtered. As long as you are not doing what everyone is doing, you stand to make good decisions. That being said, it does not mean going totally against the flow and doing the exact opposite of what the market is doing because the last thing you want to do is fight the market. However, it is important to realize that trading is a zero sum game and someone has to lose money in order for others to win.

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