【$ETH Signal】Short Position, Waiting for Panic Selling to Clear

$ETH Is experiencing a technical rebound after a panic sell-off. Three consecutive large bearish candles on the 4H chart broke through key support levels, accompanied by high open interest and negative funding rates, indicating that long leverage is being systematically liquidated. The current rebound volume is shrinking, only serving as a consolidation during a downtrend.

🎯Direction: Short (NoPosition)

Market Logic: Price dropped from the 2107 high point in a waterfall decline to 1736, a drop of over 17%. During this period, open interest remained high, which is typical of long leverage liquidation and forced margin calls. The current rebound has pushed the price to around 1898, but the 4H candlestick bodies are shrinking, volume has sharply decreased, and the rebound high is limited by the middle of the previous large bearish candle (1947), indicating a weak rebound. The order book depth is extremely thin, market liquidity is exhausted, and a flash crash could occur again. Negative funding rates suggest bearish sentiment dominates, but not at extreme levels, indicating panic has not been fully released. Strategy: avoid catching falling knives, wait for clear panic lows (such as increased volume on the lower shadow) or signs of failure in the rebound structure before considering entry.

Waiting for a better opportunity 👇 $ETH

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#Is the current market bottoming out or just observing?