$ETH This sharp drop has pretty much flushed out the leverage! Price plunged all the way from 2779 to 2405, and has now climbed back to around 2496, where it's moving sideways. The daily chart looks pretty rough: MA7 is at 2594 and MA25 at 2639, both acting as firm resistance. The broader trend is still bearish.
But looking at the shorter time frames, the 1-hour MACD has formed a golden cross below the zero line, and the RSI has rebounded from oversold territory to 63. The 4-hour chart also looks set for a golden cross below zero. The key 2400 level has held for now, so this can only be viewed as an oversold bounce—don't get carried away.
Looking at the data, 24-hour aggressive buy/sell volume printed a big green bar at 20:00. Panic selling and liquidation orders have mostly played out. The large-trader long/short ratio is currently bearish (shorts account for 64%). The funding rate is just 0.0005%, and open interest has pulled back from its highs. This suggests that big players are waiting on the sidelines and aren't rushing to buy the dip, so we shouldn't rush into a fully loaded position either.
Trading plan (for discussion only, not advice): 2400 is the make-or-break level. If a retest holds, you could take a small long position to play a bounce. The first resistance above is 2550–2600. If price rebounds there on low volume, close the long decisively. Remember to use a stop-loss—don't hold a losing position!
$ETH #ETH
But looking at the shorter time frames, the 1-hour MACD has formed a golden cross below the zero line, and the RSI has rebounded from oversold territory to 63. The 4-hour chart also looks set for a golden cross below zero. The key 2400 level has held for now, so this can only be viewed as an oversold bounce—don't get carried away.
Looking at the data, 24-hour aggressive buy/sell volume printed a big green bar at 20:00. Panic selling and liquidation orders have mostly played out. The large-trader long/short ratio is currently bearish (shorts account for 64%). The funding rate is just 0.0005%, and open interest has pulled back from its highs. This suggests that big players are waiting on the sidelines and aren't rushing to buy the dip, so we shouldn't rush into a fully loaded position either.
Trading plan (for discussion only, not advice): 2400 is the make-or-break level. If a retest holds, you could take a small long position to play a bounce. The first resistance above is 2550–2600. If price rebounds there on low volume, close the long decisively. Remember to use a stop-loss—don't hold a losing position!
$ETH #ETH
