Crypto faces worst week since FTX as geopolitics rattle markets — short Ethereum
Thesis
Cryptocurrencies are experiencing their worst sell-off in years, wiping out hundreds of billions in value as panic selling takes hold. Simultaneously, escalating military tensions in the Middle East—specifically the closure of a major global oil shipping route—are driving up energy costs and stoking fears of broader economic inflation. When inflation spikes and geopolitical uncertainty reigns, investors historically flee high-risk assets like crypto first. Ethereum is bleeding out faster than Bitcoin in this rout, making it a prime candidate to continue sliding lower as these macro pressures show no immediate signs of resolution.
Strategy approach
Build a trend-following short strategy for ETHUSDT on the 4-hour (H4) timeframe. Enter a short position when the price makes a new 20-day low and the RSI(14) is below 40, indicating strong downward momentum but not yet completely oversold. Exit the trade if the price crosses back above the 10-day moving average, or use a 5% trailing stop to protect against sudden upside reversals.