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📘 What is an engulfing candle?
$ETH printed two bearish engulfing candles in the last week, and both came before a drop. The first one marked the Oct 2 top near $2,777. The second one broke the range floor on Oct 7.
An engulfing pattern uses two candles. The second candle's body (open to close) is bigger than the first one's and fully covers it. It shows that one side took full control in a single candle. Bullish engulfing = a green body swallows a red one after a drop. Bearish engulfing = a red body swallows a green one after a rise.
📊 Live chart in the cover and in the image post below.
🔍 How to spot it
• Find the trend first. A bullish engulfing needs a drop before it. A bearish engulfing needs a rise before it
• Candle 1 is small and goes with the trend (red in a drop, green in a rise)
• Candle 2 opens near candle 1's close and closes past candle 1's open
• Compare bodies only, not wicks. Body 2 must cover all of body 1
• The bigger candle 2 is versus candle 1, and the higher its volume, the stronger the signal
📈 How traders use it
• Entry: after candle 2 closes, or on a small pullback into candle 2's body on the next candle
• Stop-loss: past the wick of candle 2. Below its low for bullish, above its high for bearish
• Target: the next support or resistance level, or at least 2x the risk
• Best spots: at a key level (range top, range floor, old high or low), not in the middle of nowhere
🧪 Live example: $ETH , Oct 2 – Oct 9, 2026
Bearish engulfing #1 (daily, Oct 2):
• Oct 1 was green: $2,686 → $2,706
• Oct 2 spiked to $2,777, then closed red at $2,669. Its body covered all of Oct 1's body
• Volume was 1.6x the day before, right at the top of the range
• ETH never closed above that high again
Bearish engulfing #2 (4H, Oct 7, 00:00 UTC):
• The 4H candle before it was a small green: $2,692 → $2,697
• Then one red 4H body: $2,697 → $2,611, about -3.2%
• Volume was 6.4x the candle before. It broke the ~$2,635 range floor
• ETH kept falling to $2,406 on Oct 8, about 13% under the Oct 2 high
The bullish engulfing that didn't happen (4H, Oct 8):
• The red 4H candle into the low went $2,537 → $2,436
• The next candle bounced green, but only to $2,465
• That green body covered about 28% of the red one. Not an engulfing, so no reversal signal yet
A bullish one on $BTC (daily, Oct 1):
• Sep 30 closed slightly red. Oct 1 opened $83,624 and closed $84,880, covering it
• The next day BTC tagged $87,220, then got rejected. A signal gives a move, not a guarantee
Where ETH is now:
• Price about $2,483
• 4H RSI(14) 30.9, close to oversold
• 4H 20 EMA ~$2,548 and 50 EMA ~$2,611, both above price and falling
• A 4H bullish engulfing at or above $2,406 would be the first real buyer signal. A close under $2,406 keeps the trend down
⚠️ Common mistakes
• Trading it without a trend before it. In a sideways chop, engulfing candles show up all the time and mean little
• Counting wicks instead of bodies. The rule is about bodies
• Ignoring volume. An engulfing on weak volume often fails
• Acting before the candle closes. A big green candle can turn red in the last minutes
✅ Quick checklist
• Is there a clear trend before it?
• Does body 2 fully cover body 1?
• Is it at a key support or resistance level?
• Is volume higher than on candle 1?
• Is the stop past the wick, sized to 1-2% risk?
💬 Do you trade engulfing candles on the 4H or the daily? 👇
Not financial advice. DYOR.
#TradingTips #Candlesticks #Ethereum

One year ago, Binance listed the most hyped token of 2025 — and the chart since then is a warning every trader should study.
$ASTER is trading at ~$0.71 right now. That's roughly 70% below its $2.41 all-time high. Let that sink in before you read the next paragraph.
**The setup**
In September 2025, CZ publicly praised Aster — the $BNB Chain perp DEX with ex-Binance staff behind it and his YZi Labs holding a minority stake. What followed was pure frenzy: $ASTER ran ~1,500% in days, from under $0.10 to $2.41 by September 24.
Then came the official catalyst: on October 6, 2025, Binance spot-listed ASTER with USDT/USDC/TRY pairs and a Seed Tag. The announcement alone spiked it 10% in an hour, back above $2. On paper, the dream scenario.
**The unraveling**
Three things broke the story — and all three still matter today.
1. **The volume was suspect.** DeFiLlama delisted Aster's perp volume data after its founder showed Aster's volumes mirroring Binance's perps almost exactly — a correlation he said was unlikely to occur naturally. One snapshot showed Aster printing $2.76B in volume with just $7.2M in liquidations. Real traders liquidate. Loops don't.
2. **The unlocks never stopped.** Only ~2.7B of 8B tokens circulate today. The team had to slash monthly emissions 97% in March 2026 just to slow the bleeding. The airdrop tranche keeps vesting for 80 months.
3. **The king never left.** Hyperliquid now does ~$216.9B in 30-day perp volume vs Aster's $68.1B — and $48.3M in 30-day fees vs Aster's $4.4M. The "Aster flipped $HYPE " headline was a moment, not an era.
**So is it dead?**
No — and that's the interesting part. Aster is still the #2 perp DEX, with ~$479M in cumulative protocol fees and ~$1.49T in cumulative perp volume. TVL sits near $800M. CZ's publicly disclosed ~$2M+ personal buy ("I buy and hold") still anchors the bull case — and retail is still riding the dream, while signal traders short every bounce near $0.70.
Here's my take: listings are exits for the patient, not entries for the late. The data on Binance listings is brutal — on average, newly listed tokens dump ~70% from peak, and nearly half top on listing day itself. $ASTER followed the script almost perfectly.
The question isn't whether Aster the DEX survives. It's whether $ASTER the token ever earns its 2025 price again.
Not financial advice. DYOR.