【$ETH Signal】1H Oversold Rebound Play, Watch for Short Squeeze and Capital Reflow

$ETH The 1H timeframe has formed an initial support level between 1926-1973. RSI on the 1H chart (32.47) is severely oversold. Although the 4H trend is still downward, a bullish divergence is beginning to form on the 1H, indicating a short-term technical rebound. Market depth shows sell orders accumulating at 1964.66 (43.287 ETH), but buy support below remains continuous. Funding rates have turned negative (-0.0053%) while open interest remains stable, suggesting a potential short squeeze.

🎯Direction: Long (Long)

🎯Entry/Order: 1962 - 1965 (Reason: 1H candlestick stabilizes above EMA20_1h, currently consolidating near the price, waiting for a confirmed breakout )

🛑Stop Loss: 1945 (Reason: Break below recent 1H low of 1933 and ATR lower band support )

🚀Target 1: 1998 (Reason: Resistance at 1H EMA20 moving average )

🚀Target 2: 2020 (Reason: Fibonacci 0.382 retracement of the previous 4H decline and EMA50_1h resistance )

🛡️Trade Management:

- Position Size: Light (Reason: The 4H trend remains bearish; this is a counter-trend rebound with higher risk )

- Strategy: After reaching Target 1, reduce position by 50% and move stop loss to entry point (break-even). For the remaining position, target Target 2. If the price stalls near Target 1 and falls below the trailing stop, exit all positions.

Market Depth Logic: Open interest remains stable rather than decreasing, indicating no large-scale capitulation by longs during the decline, possibly passive selling pressure. The 1H RSI shows bullish divergence with price, suggesting buying power is quietly accumulating. The order book imbalance of -75.21% indicates concentrated selling pressure; once absorbed, a rebound could occur rapidly. The key point is whether the 1H can break and hold above 1973 (recent high) with increased volume, which would open up further upside.

Trade here 👇 $ETH

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