【$ETH Signal】1H Oversold Rebound Play + 4H Key Support Test

$ETH The 1H timeframe has entered an extremely oversold zone (RSI 28.79), with the price receiving initial support near the 2000 level and showing a brief sideways movement. The 4H chart just formed a long lower shadow large bearish candle, testing the previous low at 1992, but open interest (OI) remains stable, indicating that the decline is not primarily driven by major players offloading, but rather panic selling caused by long liquidation. The negative funding rate (-0.0032%) provides fuel for a potential short squeeze rebound. Currently at a critical bullish-bearish crossroads—either forming a double bottom rebound here or breaking below the previous low to accelerate downward.

🎯 Direction: Dual scenario (preferably looking for a rebound)

⚡ Long trigger conditions: Price stabilizes above 2020 on the 1H close (Reason: Breaks short-term downtrend line and initial resistance at 1H EMA20).

🎯 Entry/Order: 2022 - 2025 (Reason: Confirmed after retesting resistance).

🛑 Stop-loss: 1990 (Reason: Breaks below previous low at 1992, invalidating the double bottom pattern).

🚀 Target 1: 2055 (Reason: 1H EMA50 and previous rebound high).

🚀 Target 2: 2090 (Reason: Resistance zone at the 4H high).

⚡ Short trigger conditions: Price falls below 1990 on the 1H close (Reason: Breaks key support at previous low).

🎯 Entry/Order: 1985 - 1988 (Reason: Confirmation after breakdown and rebound).

🛑 Stop-loss: 2015 (Reason: Re-establishing above 2000 and above the breakout point).

🚀 Target 1: 1950 (Reason: Extension of the previous downward wave).

🚀 Target 2: 1900 (Reason: Psychological integer level).

🛡️ Trading Management:

- Position size suggestion: Light (Reason: Unclear direction, high volatility, ATR reaches 41 points).

- Execution strategy: For longs, reduce position by 50% after reaching Target 1, and move stop-loss up to entry price. For shorts, similarly reduce by 50% after Target 1, and move stop-loss down to entry price. If the price hovers in the entry zone for more than 2 1H candles without progress, consider closing early.

Deep logic: Market depth shows sell orders at 2004.02 with 127 ETH, forming a short-term resistance wall, but buy orders below are sparse. A breakout above this could trigger a quick rebound. The 1H RSI is severely oversold, indicating a technical correction is needed. Although the 4H trend is weak, if the 1H forms a bullish divergence and volume increases, it could attract short-term short covering. Monitor OI changes closely—if OI rises during a rebound, the rebound could be sustainable.

Trade here 👇 $ETH

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