$ETHFI This move is getting interesting: price has pushed above the top of the recent 20-candle 5m range, the aggressive buy/sell ratio is 1.69, and volume is also running at over 1.5 times normal.
But OI is falling—it's edging down on both the 15m and 1h timeframes. The notional change looks positive, but fundamentally this seems more like shorts being squeezed into covering than a major influx of new longs.
The funding rate has already surged to a high percentile recently, with an anomalous percentile of 96.6%, ranking 9th across the whole pool. It's persisted for several consecutive periods, so this isn't just a one-candle spike.
With this kind of setup, I generally don't chase the first move. I wait for a pullback and see whether buyers step in. When a rally is driven by short covering, whether it can hold depends on what happens during that pullback.
But OI is falling—it's edging down on both the 15m and 1h timeframes. The notional change looks positive, but fundamentally this seems more like shorts being squeezed into covering than a major influx of new longs.
The funding rate has already surged to a high percentile recently, with an anomalous percentile of 96.6%, ranking 9th across the whole pool. It's persisted for several consecutive periods, so this isn't just a one-candle spike.
With this kind of setup, I generally don't chase the first move. I wait for a pullback and see whether buyers step in. When a rally is driven by short covering, whether it can hold depends on what happens during that pullback.
