ETH in the Cage: The Debate Over the Illusory and Real Aspects of the 3000 Defense Line

Ethereum (ETH) is once again locked in a tug-of-war around the $3,000 mark. Behind this seemingly simple numerical game lies the ultimate battle between the big players and retail investors, human greed and market truth. When the price hit a high of $3,034.99, countless people cheered and claimed “a breakout is imminent,” unaware that they had already fallen into a carefully designed trap.

Recently, I came across an interesting story. Someone took a handful of balls from a sports arena, and when caught, explained, “I thought no one wanted them.” It was just greed for a small bargain. This story is very similar to the current market—everyone thinks they’re picking up a bargain, not realizing they’ve already been seen through.

Who is controlling this upper shadow?

Look at ETH’s candlestick chart, that long upper shadow looks like an invisible hand. It pulls from 2900 to 3000, then surges to 3035, and finally pulls back again. This isn’t a breakout; it’s a test—main players are testing the market’s resistance and retail traders’ psychological limits.

What happened between 3034 and 3035? A lot of retail funds chasing the high were harvested here. They thought they were getting on the train, but in reality, they were just being loaded onto a trap. Volume didn’t keep up, trading activity was weak—all retail traders celebrating alone. Such breakouts are often false moves.

The logic of the big players is clear: push retail traders from the 2900 cage to 3000, then attempt to push toward 3035. But when selling pressure appears, they withdraw without hesitation, causing the price to fall back. This isn’t “shakeout,” but a deliberate bait—using false breakouts to lure late buyers.

The cage and human nature: market truths

People always fantasize about “going into the wilderness,” but the market’s essence is a series of cages layered one inside another. Breaking out of a small cage only means entering a larger one, not freedom. ETH breaking from 2900 to 3000 makes retail traders feel they’ve gained, but in reality, they’ve just been pushed into a bigger confinement zone.

That’s human nature. Someone takes a ball, thinks no one saw, so it’s not stealing; chasing a high, retail traders think buying on the rise isn’t gambling, so it’s not risky. The result? One loses the ball, another gets trapped with their funds. The most ironic part? They all think they’ve gained an advantage.

When the market repeatedly oscillates between 3045 and 3065, you should understand—this is the true top of the big cage. The heavier the selling pressure, the more resolute the defense. The failed attempt at 3034 shows that the overhead selling pressure is extremely heavy.

Strategic positioning: waiting at the cage door

Since we know the fight is inside the cage, don’t dream of venturing into the wilderness. The smart move is to wait at the cage door.

Trading strategy:

• Direction: Short (betting on the top of the upper cage)
• Accumulation zone: 3050-3060
• Stop-loss: 3085
• Take profit targets: 3008-2977

This isn’t blind shorting but a strategy based on understanding the big players’ psychology. When the market repeatedly gets pushed back in the same area, the next breakout becomes less likely. The memory of resistance at historical levels creates obstacles, while retail traders’ fear forms support. Between these two forces, we wait for the prey to come to us.

Currently, ETH’s real-time price is around $2.08K, with a 24-hour high of $2.15K. From this position, the market is still repeatedly confirming support at the bottom zone. Every rebound is an opportunity to short, every pullback tests the validity of the cage.

Quietly waiting

Days like Wednesday are best for calming the mind. Don’t bark through the cage; don’t chase after highs; don’t panic-sell during dips. Time will ultimately prove that those seemingly breaking upper shadows are just false promises the market makes to retail traders.

Smart traders choose to quietly wait, letting the market’s truth gradually reveal itself. The more people are trapped inside the cage, the higher its value. When everyone despairingly believes a breakout is impossible, the real opportunity may quietly arrive. Don’t be the “decent person” holding the ball, nor the “aggressive investor” chasing highs. Learning to survive inside the cage is the first lesson for traders.