【$ETH Signal】1H Oversold Rebound Trading, Watch for Short Squeeze Opportunities

$ETH The 1H timeframe has formed initial support in the 1910-1915 range. After a slight dip, the price has shown a small rebound. RSI on the 1H chart is already in the oversold zone (32.83), indicating a technical correction is needed. The 4H timeframe remains in a downtrend, but the latest 4H candle closed with a long lower shadow, showing buying resistance in the 1900-1910 area. The key points are: open interest remains stable, price declines without a significant drop in OI, and the funding rate is negative, indicating potential for a short squeeze.

🎯Direction: Long (Playing the Oversold Rebound)

🎯Entry/Order: 1918.0 - 1922.0 (Reason: Near current price, initial stabilization zone on the 1H chart, starting rebound play)

🛑Stop Loss: 1905.0 (Reason: Breaks below multiple intraday support levels and psychological level at 1900)

🚀Target 1: 1945.0 (Reason: Resistance at the 20 EMA on the 1H chart and previous minor support level)

🚀Target 2: 1965.0 (Reason: 0.382 Fibonacci retracement after the 4H downtrend rebound)

🛡Trade Management:

- Position Size: Light (Reason: 4H trend is still bearish; this is a contrarian rebound, higher risk)

- Strategy: Once the price reaches Target 1, move the stop loss up to the entry price (break-even). If the price strongly breaks above 1945 and stabilizes, hold the remaining position towards Target 2.

Deep Logic: Market depth shows buy orders concentrated around 1915-1917 (depth imbalance 68.55%), forming a micro support. In a negative funding rate environment, shorts need to pay costs. If the price cannot effectively break below 1910, it may trigger short covering and push a rebound. A bullish divergence is forming on the 1H RSI, but confirmation is needed. The risk is that the 4H downtrend remains intact; if the rebound is weak, strict stop-loss execution is necessary.

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