Daily Analysis #ETH

1️⃣ Structural interpretation First of all, congratulations to those who dared to short in the 3540-3590 range. There are still short positions below Ethereum, but can we chase the shorts? My answer is definitely no, although there is space below, the more we are at such nodes, the more we need to be careful of a v-shaped reversal. At this position, once the market maker pushes the price up or the accumulation ends, it will quickly move away from the cost area. If there is a problem of being trapped, then in a short time, it will definitely be impossible to exit without losses.
2️⃣ Capital Flow & On-chain & Exchange Dynamic Market Sentiment (Collective "Psychological" Reflection): Positive signals have emerged in market sentiment. According to Santiment data, the number of bullish comments about Ethereum on social media is approximately 50% higher than bearish comments. Although the overall discussion heat is lower than usual, this slightly positive sentiment contrasts with the prevailing "extreme fear" in the broader market, possibly indicating that ETH remains attractive to some investors. Potential Turning Point: Some analysts point out that the prevailing fear and negative sentiment in the current market may lead to "weak hands" (investors with low confidence) selling off, which often precedes a market turnaround and could even prompt an "unexpected November rebound."
3️⃣ Day trading strategy: During the day, we are looking for a correction in this area. If the market rebounds to the "extreme reversal" on the 1-hour chart, we will consider entering a short position. It is important to pay attention to whether the level around 3370 can break upwards. If a weak situation appears here, we can consider entering the market early.
4️⃣ Risk Warning Market Correlation Risk: The movement of ETH is highly correlated with BTC. If big brother BTC loses the $100,000 level, little brother ETH will find it hard to stand alone, and the decline may be amplified. High Volatility Risk: The intraday volatility of ETH is usually greater than that of BTC. In the current market environment, this means that any operation may face significant price fluctuations, and it is essential to manage risks through light positions and stop-losses. Sentiment Shift Risk: Although the current market sentiment indicators suggest a possible rebound, this is not guaranteed. If panic sentiment continues to spread or even worsens, the price bottoming and rebound process will become longer and more tortuous.