【$ETH Signal】1H Oversold Rebound Trading Opportunity Under Negative Funding Rates

$ETH The 1H timeframe formed a double bottom with needles between 1992-2010, RSI dropped to 32 indicating severe oversold conditions. Although the 4H timeframe is still in a downtrend channel, the 1H shows signs of stabilization and a potential reversal. Coupled with negative funding rates, there is a short-term rebound or short squeeze opportunity.

🎯Direction: Long (Long)

🎯Entry/Order: 2015 - 2020 (Reason: Hold above 1H EMA20 and previous small platform )

🛑Stop Loss: 1990 (Reason: Break below double bottom low and psychological level )

🚀Target 1: 2045 (Reason: Resistance at 1H EMA50 and previous rebound high )

🚀Target 2: 2070 (Reason: Upper boundary of 4H downtrend channel and Fibonacci 0.382 retracement level )

🛡️Trade Management:

- Position Size: Light (Reason: 4H trend remains bearish; this is a counter-trend rebound play )

- Execution Strategy: After reaching Target 1, move stop loss to entry price. For remaining positions, look toward Target 2. If price stalls and pulls back near 2020, consider exiting early.

Deep Logic: Funding rate is -0.0076%, indicating negative funding, but open interest (OI) remains stable and has not sharply declined with price drops, suggesting that shorts have not been heavily profit-taking. Instead, they may have accumulated large leveraged short positions. The 1H RSI shows early divergence, with buy orders concentrated around 2009 and sell pressure dispersed. This is a typical “negative funding rate + price support” scenario for a potential short squeeze. The key is whether price can quickly recover past 2020 and stabilize.

Trade here 👇 (

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