Those who bought ETH at the bottom last night must have woken up laughing; after plunging to 2313, the price rose straight to 2470. This rebound is really strong!
But I’ve taken a look at the market now, and I have to temper your enthusiasm a little: don’t rush to chase the price at this point.
Let’s start with the data: the RSI on the 15-minute and 1-hour time frames has entered deeply overbought territory, jumping to 78 on the 1-hour chart and reaching 76 on the 15-minute chart. What does that mean? The short-term rally has been very rapid, and the urge to chase the move and buy has peaked.
On the higher timeframes, the MACD on the 4-hour chart has formed a bullish crossover below the zero line, which is a good sign that momentum is turning positive. But look above: near 2496, the 4-hour MA99 is creating strong resistance, and above it is the previous high at the key 2500 level.
Honestly, this rally is happening because the previous drop was so sharp that it triggered a wave of short liquidations. Then retail traders saw the price rising and rushed back into the market in a frenzy. But market makers aren’t kind enough to keep pushing the price higher; these late buyers have to be shaken out, or the load will get too heavy and the move won’t go far.
My strategy is simple: don’t chase a rising price under any circumstances. If you enter now, you’ll feel uneasy at the first slight pullback. If you want to enter, be patient and wait for the price to return to the support zone between 2430 and 2450, then watch for it to stabilize as trading volume declines. But if it breaks straight through 2500 on rising volume, we’ll deal with that if it happens.
