Retracing yesterday’s breakout candles is a sign of weakness, but it's still not the right place to open shorts. The EMA50 remains strong support until proven otherwise. If the price breaks below the EMA50 and the $2,580 S/R level, that would be another clear sign of weakness, and I’d look to short with a target around the low $2,200s.
There’s still a chance for the EMA50 to hold again, but the risk reward isn’t favorable for longs here.
After hours of deep studying $ETH Open Interest, I believe most of the OI is coming from short positions. They're longing altcoins and shorting ETH to hedge, but I have news for you: you're going to get liquidated.
Open Interest will drop when ETH breaks out above $4K.
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