Last night, Ethereum experienced a textbook rollercoaster market—first plunging sharply to touch the $2,900 support level, then violently rebounding to $3,150 on rate cut expectations, only to fall back to around $3,010 in the early hours and oscillate there. This combination of a V-shaped reversal and a secondary pullback dealt a heavy blow to traders chasing the highs and lows, trapping both bulls and bears.

To be honest, the damage from this round of volatility wasn’t in the magnitude of price swings, but in the mistimed moves. Many people just bought the dip and opened positions at $2,900, then FOMO’d in with leverage at $3,150, only to get liquidated by the $3,010 retracement. The market cruelly proved a truth: in times of wild swings, emotional trading is slow suicide.

Right now, the priority isn’t to predict the next market direction, but to manage your positions. If you’re stuck in a long position from chasing the top, first assess your entry price and leverage—if it’s a light spot position, you might consider averaging down; if it’s a leveraged contract, make sure you set a stop loss, and don’t fantasize about “holding out until you break even.” Conversely, if you’re stuck in a short position from the bottom, don’t rush to close it out; instead, watch whether the $3,150 resistance holds.

The real pivotal moment will be Thursday’s Fed meeting. Until then, all volatility is just emotional games. Rather than trying to catch the top or the bottom, it’s better to control your position size, protect your capital, and wait for the dust to settle before making a decision.