ETH Morning Watch: Signs of a Rebound After a Series of Declines

For those of you following ETH, let's review the market this morning and explain the key points to watch.

First, looking at the daily chart, ETH closed with a small bearish candlestick yesterday, marking the end of several consecutive declines. The accompanying chart also signaled a death cross. While the overall trend is still consolidating at a high level, the short-term trend is clearly bearish, so keep this in mind.

Following up with the 1-hour chart, ETH initially plunged sharply downward this morning but quickly recovered, leaving a long lower shadow on the candlestick chart. This suggests a possible short-term rebound, but don't rush. The rebound momentum hasn't reversed yet, so don't take it as a reversal signal.

In terms of trading volume, ETH's trading volume over the past 24 hours was approximately $24 billion, an 8% increase from yesterday. Interestingly, while the volume was significantly higher during the decline, it retreated during the rebound. This clearly indicates that bulls are cautious about buying in and are hesitant to act rashly.

A word of caution regarding derivatives: the funding rate for perpetual swaps even briefly turned negative this morning, and the short-term leverage cleanup was particularly pronounced. Previously, the market was rife with greed, but it has quickly shifted to neutral. Everyone's mindset has stabilized considerably, but also become more conservative.

Finally, let's discuss our trading strategies, categorized into short-term and swing trading strategies:

Short-term: If you're more aggressive and can handle the risk, you can try a light long position in the 4750-4780 range, with a stop-loss at 4720 and a target of 4850-4900. If you prefer a more conservative approach, wait until ETH confirms resistance around 4900 before considering a long position.

Swing trading: Focus on the daily close. If it breaks above 4900, there's hope for a retest of the 5000 mark. However, if it falls below 4720, the probability of a pullback to 4600-4650 increases significantly.

In short, whether you are long or short, don't rush into it too much. Controlling risks is the most important thing! #ETH走势分析