By mid-June 2022 the lending platform Celsius had frozen withdrawals, Three Arrows Capital was unwinding, and forced selling was hitting every crypto asset at once. Ethereum broke below $900 during this window — a level that, at the time, read as the beginning of something much worse. It closed the same window near $1,128, up roughly six percent from the open.
This is the mirror image of a euphoric top and it is just as hard to trade. The low is a genuine multi-year bottom in hindsight, but living through it means buying while the news flow says the asset may not survive, with no confirmation available except price itself. The bounce is sharp and mostly happens while conviction is lowest.
Same engine, same hidden right-hand side — a different day's problem.