This wave of ETH's decline may not be a bad thing—instead, it seems to be preparing for the next market move.

Let's look at the data: In the past 24 hours, long positions worth over $210 million have been liquidated, and the necessary leverage has basically been cleared out. More importantly, there are $1.43 billion in short stop-loss orders clustered around 2884; once this level is broken, the force of short covering will be very strong. Looking at support, 2718 has been tested twice without breaking, indicating solid buying strength below. The current price is around 2825, and from a risk-reward perspective, it looks quite attractive.

If you want to set up a position, consider building in batches between 2790-2810, adding more around 2760, and setting your stop-loss below 2690 to protect your capital. The initial target is 2850, and if it holds, 2920 is not out of the question.

Of course, there are always risks in the market. Strictly controlling your position size and stop-loss is the long-term way to go.