Ethereum / Breaking News / Analytics
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.