【$ETH Signal】1H strong breakout followed by high-level consolidation, pullback to enter long for a second rally

$ETH On the 1H timeframe, after a massive bullish candle (over 4% gain), the price enters a high-level consolidation phase. The price oscillates within the $2040-$2060 range, with the 1H EMA20 ($2015) turning into a strong dynamic support. On the 4H level, the price has broken through the previous consolidation upper boundary forcefully, but the short-term rally is excessive, indicating a need for a pullback to confirm support. Open interest remains stable, and the negative funding rate suggests bears are still in control, hinting at a potential short squeeze.

🎯Direction: Long (Pullback to go long)

🎯Entry/Order: $2035 - $2040 (Reason: 1H consolidation lower boundary + 4H breakout pullback confirmation)

🛑Stop loss: $2010 (Reason: Break below 1H EMA20 support + previous 4H bullish candle low)

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

🚀Target 2: $2120 (Reason: 1.618 Fibonacci extension based on recent volatility)

🛡️Trade management:

- Position size suggestion: Standard position (Reason: Clear structure on 4H breakout, 1H pullback offers a good risk-reward ratio)

- Execution strategy: After the price reaches $2075 at Target 1, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price of $2040. If the price cannot hold above $2050 and falls back into the entry zone, consider exiting early.

Deep logic: The massive surge in the past 4 hours accompanied by buying dominance indicates institutional funds are entering. Currently, the 1H RSI (68.86) has pulled back from overbought but remains in a strong zone, suggesting a healthy correction before another upward move. The order book shows a large sell order ($2048.16) at level 1, requiring increased volume to break through, but there is strong buy support in the $2040-$2045 zone below. In a negative funding rate environment, if the price strengthens again, it could trigger short covering and accelerate the rally.

Trade here 👇 $ETH

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