How do the scheming dealers use means to wash out the Ethereum in the hands of retail investors?
1. Lend Ether and dump it through exchanges
First, the dealers will lend a large amount of Ethereum and sell it in a concentrated manner on the exchange to create market panic. Through this large-scale sell-off, they are able to quickly lower the market price of ETH. This not only directly suppresses the price, but also triggers panic among retail investors, causing more people to follow suit and sell.
2. Continue to suppress the ETH/BTC exchange rate
After the dump, the dealers will continue to suppress the exchange rate between ETH and BTC, especially those large traders who are long on the exchange rate. As the ETH/BTC exchange rate continues to fall, traders who are long on the exchange rate will be forced to close their positions or reduce their positions, further increasing market selling pressure. At the same time, retail investors who see the price continue to fall will panic and sell their ETH to avoid greater losses. This vicious cycle causes the price of ETH to be further depressed.
3. Use negative news (FUD) to suppress the market
The dealers will also use negative news (FUD) in the market to suppress the price of ETH. For example, spread the news that the Ethereum ETF will be rejected. This kind of news will further suppress market sentiment and force retail investors to sell at low prices. At the same time, the market makers absorb a large number of these cheap Ethereum at low prices.
4. Chip absorption time: May 23
Market makers usually choose a specific time node to absorb a large number of chips. The date mentioned in this article is May 23. The market makers will accumulate enough chips before this day and make large-scale purchases when the market sentiment is most pessimistic.
5. Start to sing long Ethereum and value coins
After May 23, regardless of whether the result of the Ethereum ETF is delayed or passed, the market makers will start to sing long Ethereum and other value coins. They will use various channels and means to create market optimism and attract retail investors to re-enter the market. At this stage, the market makers can get rich returns through price increases.
The same is true for value coins
For other value coins, the strategies used by the market makers are similar:
1. Continuously pull up the meme coin: the market makers will vigorously pull up the meme coin, and at the same time publish slogans such as "value coins are not as good as meme coins" to attract retail investors to transfer funds from value coins to meme coins.
2. Create the illusion that the value coin is overvalued: the market makers will claim that the value coin is overvalued and will be unlocked in large quantities in order to dissuade retail investors from taking over.However, in fact, the unlocking time of institutions may be next year, and there are not enough chips in the market now.
3. Horizontal shock wash: Through long-term sideways shock, the dealers continue to wash out the chips in the hands of retail investors, causing retail investors to sell their value coins after their patience is exhausted.
6. Losses of retail investors
After this series of operations, retail investors often find that although the market has ushered in the return of the "copycat season", their Ethereum and value coins have been forced to sell at low prices, missing the subsequent rise opportunities. This routine enables dealers to absorb cheap chips when the market is sluggish and make huge profits when the market recovers, while retail investors are forced to bear most of the market risks and losses.
Through a series of complex operations, dealers have successfully washed out the Ethereum and value coins in the hands of retail investors. For retail investors, it is crucial to understand these routines and remain calm and rational. Investors should avoid blindly following the trend of selling when the market panics and maintain a long-term perspective to protect their investment interests in a turbulent market.
