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(Ethereum ETH) current price is approximately $1,990. Below are common bullish and bearish strategy frameworks under current market conditions, along with risk management points (not investment advice, for reference only):
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📈 Bullish Strategies
1) Entering near support levels (gradual entry)
• Buy gradually within major support zones to reduce costs:
• If the price stabilizes near key support (such as previous significant support levels), consider staggered entries to minimize single-entry risk.
• Set target zones at previous resistance or psychological levels. This strategy is similar to "buying on dips."
📊 Logical basis:
• Historical trends often show oscillation and accumulation; holding support levels increases the probability of a rebound.
• DCA (Dollar Cost Averaging) strategy suits long-term holders to mitigate volatility impacts.
Recommended settings:
• Stop-loss: below support by a certain percentage (e.g., -3% to -5%)
• Target: set near previous highs or resistance levels
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2) Trend breakout strategy (enter long after confirmation of breakout)
• Enter when technical analysis confirms an upward breakout: e.g., price breaks important resistance with increased volume.
• There is potential for continuation after a trend breakout, but wait for confirmation before entering.
📊 Logical basis:
• Quantitative analysis shows trend breakout strategies have performed well in past cycles during backtesting.
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3) Moving average crossover trend strategy
• When short-term moving averages cross above medium- and long-term averages, it can be seen as a bullish signal.
• Combine with indicators like MACD, RSI to assess strength and momentum.
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📉 Bearish Strategies
1) Short at resistance (or reduce long positions)
• If the price struggles to break through important resistance or shows a reversal pattern, consider:
• Reducing existing long positions
• Opening short positions (via futures, CFDs, or bearish ETFs)
📊 Logical basis:
• Price structure breakdown and established downtrend indicate stronger bearish momentum.
• Technical analysis may show structural breakdowns (such as descending channels or clear downtrends).
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2) Short-term breakdown follow-up
• If the price breaks below key support and stabilizes downward, consider opening shorts to catch the decline.
• Stop-loss placement is essential due to high volatility in crypto assets.
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3) Options/Futures hedging
• Use derivatives to establish hedge positions, for example:
• Purchasing put options for protection
• Increasing short futures positions when a clear downtrend is expected
📊 Reminder: Derivative trading carries higher risks than spot trading; exercise caution.
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🧠 Risk management advice (general)
1. Set stop-loss points
• Whether long or short, always pre-set stop-loss to avoid sudden reversals.
2. Position control
• Do not invest all funds at once; keep maximum position size within reasonable risk limits.
3. Use multiple indicators
• Relying on a single technical indicator can lead to misjudgment; combining multiple indicators with volume analysis is more reliable.
4. Monitor macro and liquidity factors
• Market sentiment, whale holdings, and liquidity changes can influence short-term directions.