Fake Bull Reversal, Beware of Chasing High!

After the false breakout and fake bull reversal on Ethereum, a short squeeze towards 3000-3300 is imminent.

Recently, Ethereum has staged a typical false breakout + fake bull reversal: during the New Year holiday, liquidity was thin, and it briefly rose above $3000 before falling back. This looks like a lack of bullish momentum, but in fact, it’s a shakeout; the subsequent pullback did not break the key support at 2900, and the so-called “bull reversal end” is actually a trap to lure in shorts.

From a technical perspective, the daily moving averages have formed a golden cross, and the 4-hour lows are continuously rising, indicating a solid bullish structure; funds are continuously flowing into ETFs, with clear signs of institutional accumulation on dips. The previous false move has already absorbed some selling pressure.

Core view: The $3000 level has shifted from resistance to strong support. A short-term short squeeze is about to start, targeting the 3200-3300 range (a previous dense resistance zone). After this rally, a phase correction will follow, with support focused around 3080-3100.

Refer to the trend charts I posted in my previous posts; some viewpoints are very important!

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