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

$ETH The 1H timeframe has formed an initial bottoming pattern in the 1936-1960 range, with RSI(1H) dropping to a deeply oversold level of 31.67, indicating a technical rebound demand. The 4H timeframe just experienced a volume-spike long bearish candle, directly testing the previous low at the 1936 key support zone. The trend remains bearish, but short-term downward momentum is weakening. Currently, the price is below the 4H EMA50 (1967), but buying resistance appears on the 1H timeframe. Coupled with the negative funding rate (-0.0112%) and stable open interest, conditions for a short squeeze are brewing.

🎯Direction: Long (Pullback Entry)

🎯Entry/Order: 1950.00 - 1955.00 (Gradual Accumulation)

🛑Stop Loss: 1934.00 (Break below previous low support)

🚀Target 1: 1985.00 (1H EMA20 resistance)

🚀Target 2: 2005.00 (Upper boundary of dense trading zone on 1H)

🛡️Trading Management:

- Position suggestion: Light position

- Execution strategy: Enter in two batches within the 1950-1955 range. After reaching Target 1, move the stop loss to the entry price (break-even). If the price strongly breaks through 1985 and stabilizes, consider aiming the remaining position at 2005.

Deep Logic: After a sharp decline on the 4H timeframe, the 1H RSI shows severe oversold conditions, which is a classic short-term rebound signal. Market depth data shows heavy sell orders accumulated above 1960 (large sell orders at 1960.5-1960.6), but buy orders below are still decent, indicating a battle between bulls and bears at this level. Open interest (OI) remains stable rather than decreasing, suggesting the decline is mainly driven by spot selling or futures long liquidation, not active shorting, reducing the risk of a sustained plunge. The negative funding rate also increases short holding costs, fueling a short squeeze rebound. The key is whether the 1936 previous low can hold.

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