$ETH 💥 Major Liquidation – How to React? 💥

🔍 Technical Analysis:

1. 📉 Price Movement:

• The price dropped to $3,120 before sharply rebounding.

• This suggests a reaction to high liquidity levels or a short squeeze.

2. 📊 Moving Averages (MA):

• MA(7) (short-term, yellow line) remains below MA(25) (red line), signaling selling pressure.

• MA(99) (purple line) is still far above the current price, indicating a bearish trend.

3. 📈 MACD:

• The MACD is in the negative zone (-2.69), but the histogram shows signs of weakening bearish momentum.

4. 📊 Volume:

• A significant increase in volume during the bounce from $3,120 indicates buying activity or the result of liquidated long positions.

💡 Major Liquidation – What Happened?

• The sharp drop in price was likely caused by the liquidation of a large number of long positions:

1. A sudden drop triggers stop-loss orders and closes leveraged long positions.

2. A domino effect: The selling pressure increases, driving the price further down.

3. After the liquidation, the price rebounds as buyers step in near the key support zone.

📌 How to React?

1. Monitor Key Levels:

• Support: $3,120 – holding this level increases the chances of a rebound.

• Resistance: $3,188 – $3,250 (around MA99).

2. Trading Decisions:

• Buying: Consider entering only after confirmation of a rebound with increasing volume.

• Selling: If the price retests $3,120, be cautious – further declines may follow.

3. Patience: The market may retest the support level again before a decisive upward move.

🔮 Rebound Chances:

• Short-term: 60% – provided $3,120 holds as support.

• Long-term: 50% – moving averages still show bearish dominance.

🚨 Note: The crypto market is highly volatile. Adjust your risk to match your strategy!
$ETH