English Community Daily Briefing #daily

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Release Date: 2025-12-04

Overall Market Sentiment
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There is a clear split in community sentiment, with bullish price actions conflicting with bearish expectations. Key resistance levels include BTC 94k-95k and ETH 3150-3500. Traders are divided on whether these levels will see a pullback or continue to rise.

ETH Short Volatility Squeeze
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• As ETH unexpectedly surged from 2700 to 3150, a gain of over 15%, traders who sold naked call options are suffering significant losses. Although the position size is relatively small, the short call positions have caused total portfolio losses to exceed 3%.
• The challenge with selling naked options is that even with a favorable 10%+ move, being on the wrong side can still lead to unprofitable results. Considering ETH's volatility, traders are concerned about a possible further squeeze to 3500.
• The strategy for managing this position is to wait for a pullback and then roll over the options, rather than panic closing. Currently, margin maintenance is at 40%, down from an initial 50%, indicating that while this move is painful, the exposure remains within a controllable range.
• Some traders admit they can't fight market momentum, especially with rumors of large buyers continuously building positions, forcing them to respect the bullish pressure, even though short volatility positions are still in the red.