【$ETH Signal】1H strong breakout followed by high-level consolidation, retracement for long entries and second rally

$ETH The 1H timeframe has experienced a massive surge and is now consolidating strongly at high levels. The 4H timeframe has established a short-term upward trend with a single large bullish candle, and the price has stabilized above the 1H EMA20 (2015). Currently, negative funding rates and stable open interest indicate that bears are still resisting, fueling the potential short squeeze. The 1H RSI (68.86) has pulled back from overbought territory, offering a healthy retracement opportunity. The order book shows a sell wall at 2048.16 with 32.9 ETH, but there is dense buy support below. The depth imbalance of -9.35% indicates short-term selling pressure is slightly greater, awaiting absorption.

🎯 Direction: Long (Long)

🎯 Entry/Order: Buy in stages on retracement to 2035 - 2040 zone ( Reason: 1H EMA20 dynamic support zone + Fibonacci 0.382 retracement of the previous rally )

🛑 Stop-loss: 2018 ( Reason: Break below 1H EMA50 strong support + previous structural low )

🚀 Target 1: 2075 ( Reason: 4H resistance level from previous high )

🚀 Target 2: 2100 ( Reason: Daily trendline resistance + psychological round number )

🛡️ Trading management:

- Position size suggestion: Light position ( Reason: Significant rally, high-level consolidation, volatility remains high )

- Execution strategy: Enter in stages, building positions in two batches within the 2035-2040 range. After reaching Target 1, reduce position by 50% to lock in profits, and move the stop-loss of the remaining position to the entry price. If the price cannot hold above 2050 and weakens, exit early.

Depth logic: The 4H buy/sell ratio reached 0.52 during the rally, indicating buying dominance. Although the latest 1H buy ratio has decreased, the price refuses deep correction, which is healthy turnover. Open interest (OI) remained stable during the surge, suggesting it’s not just a short squeeze but possibly new long capital entering. The 1H ATR is as high as 41.6, indicating extreme volatility—trade with caution and strict stop-loss. The core logic is to confirm the first retracement after a strong breakout and the potential for a short squeeze in a negative funding rate environment.

Trade here 👇 $ETH

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