The initial unemployment claims have been released, and the data is favorable. Employment is cooling down, which is a bullish signal for the market.
But the rebound? It's very weak. ETH pulled up a bit but couldn't hold, and the volume didn't follow. It didn't even touch 2800, indicating that the main players have no real intention to push it up; they are just putting on a show with the data.
Now, this kind of rebound, if it can't go up, indicates it is a trap for the bulls, rather than a reversal. The expected rebound has come, but if there's no profit to be made, it's time to consider opportunities on the other side. You can start to gradually position for short trades, set stop-loss orders, and take it slow.
What about the future trend?
If the price continues to hover near support, that’s a standard “bearish accumulation.” The longer it lasts, the harder the next drop will be.
Only a strong rally above 2800 that holds can give the bulls a chance to reverse the trend, but it seems there's no intention of that at the moment.
The favorable news has come out, but the market hasn’t taken off, which is the biggest bearish signal.
