Last night, a friend frantically asked me: "Can I go long on ETH now?"

I told him to wait.

After the PCE data came out, inflation did drop, and everywhere in the market people were calling it a "great buying opportunity." My friend couldn’t sit still and asked again: "Isn't this bullish news going to send prices up?"

My answer was: not only should you not go long, you should actually consider going short.

Why? I was watching the liquidation data for a while—there's a huge pile of long positions waiting to be liquidated in the $3,000 to $3,200 range on ETH. If it drops below $3,000, close to $1 billion in long positions will get force-liquidated.

Is this a bullish signal? Definitely not—it’s an obvious bull trap: push the price up a bit to lure in retail traders, then dump the price to harvest their positions.

So what happened? In the middle of the night, the market moved, and my friend opened a short near $3,125. Not long after, the price started dropping, and he messaged me: "Good thing I asked you first, almost got trapped again."

The logic is actually very simple: market news is one thing, but capital flows and liquidation distribution are another. The real opportunities and risks are often hidden in the liquidation map.

What I can do is help you see which levels are "meat grinders" and which ones are real opportunities. In this market, losing less is earning more, and understanding the underlying logic is the only way to consistently profit. If you have questions, feel free to reach out—let’s avoid those obvious pitfalls together.