#以太坊行情技术解读 The easiest trap to fall into in the crypto world: confusing dumping with shakeouts

After so many years in the space, what I find hardest to watch is newbies falling for the main players' tricks. The day before yesterday, a friend was eager to ask me if he could buy more after his position dropped 30%. I looked at the candlestick chart and shook my head—this is not a shakeout, it's obvious that the main players have already sold off and run. Chasing in at this point is just walking into the gunfire.

Thinking about that hot coin from last month still makes me angry. It shot up from 2U to 5U and then started to turn around. In the group chat, a bunch of people were shouting "Buy the dip, brother," but the more they bought, the deeper they got trapped. By the time they wanted to cut losses, they were already wiped out. The signs were there early—at high levels, trading volume suddenly exploded, but the price was stuck and not moving. That’s the main players secretly offloading. Then a big red candle suddenly dropped from 5U to 3U, giving no chance to breathe. After the dump, they might try a small rebound to confuse traders, but by then, trading volume has plummeted, just waiting for the last batch of bagholders.

Real shakeouts look like this: take GAMA as an example. During the decline, trading volume was very low. When the price started to rise, volume immediately jumped. The key support levels held firm and weren’t broken—this is when the main players are clearing out retail investors.

To protect yourself, remember these iron rules:
- No volume during a dip, sudden surge during rebound = shakeout
- Active trading during a dip, sluggish during rebound = warning of distribution
- Shakeout holds key levels, but if it breaks through, it’s distribution
- Shakeouts involve quick sell-offs followed by quick rebounds; distribution involves quick sell-offs with no strength during upward moves

$ETH This applies to mainstream coins as well. There’s no sympathy in the crypto world. If you don’t understand the language of order books, you’ll just keep paying tuition to learn the hard way.