ETH Oversold Rebound Short-term Trading

1. Current Market Analysis
- Trend: The 1-hour timeframe is clearly in a downtrend. The latest large bearish candle directly broke below MA(7), MA(25), and MA(99), all short-term and medium-term moving averages, which is a strong bearish signal.
- Momentum: The MACD indicator has a death cross below the zero line and continues to diverge, indicating bearish momentum is releasing (red histogram bars lengthen).
- Oversold Signal: RSI(6) is at 27.17. Typically, RSI below 30 is considered oversold, suggesting short-term selling pressure may be overextended and a rebound could occur at any time.
- Support Level: The chart shows the lowest point at 2,108.29, which is a short-term key support.

2. Trading Direction
- Direction: Long - Short-term rebound trading
- Reason: Although the overall trend is downward, RSI is oversold and the price is far from the moving averages (large divergence), indicating a technical correction is needed. We are not trying to bottom fish for a reversal but aiming to capture a rebound profit.

3. Specific Parameter Settings
- Entry Points
- Light position trial at current price: 2,115 - 2,118 range.
- Add position (if price drops): If it dips to 2,105 - 2,108 (near previous low) and stabilizes, add to the position.
- Stop Loss
- Hard stop loss: 2,095. If it breaks below the previous low of 2,108 and continues downward to 2,095, the downtrend is not over, and exit is necessary.
- Take Profit
- First target: 2,135 (near MA7, also the recent breakout platform bottom).
- Second target: 2,150 (resistance near previous high).
- Leverage Suggestion
- For demo trading, be more aggressive, recommend 5x - 10x. For real trading, suggest no more than 3x.

4. Trading Logic Deduction
1. Entry Logic: Price sharply drops to around 2115, RSI enters oversold zone (<30), indicating short-term bearish exhaustion.
2. Holding Process:
- If the price rebounds to MA7 (about 2131), observe whether the candlestick can stay above it. If it stabilizes, hold for the second target.
- If the MACD red momentum bars start to shorten, indicating weakening bearish momentum, it’s a sign of a sustained rebound.
3. Exit Logic:
- Close positions decisively at the take profit levels.
- Or, if RSI rebounds to 50-60 but the price no longer rises, indicating the rebound is losing strength, manually close the position.

5. Risk Reminder (Demo Trading Mindset)
- Although it’s demo trading, treat it as real trading.
- Currently, it’s a “counter-trend” position (long in a downtrend), which carries higher risk than trend-following trades (shorts).
- Core principle: Enter and exit quickly, avoid holding on. If the rebound weakens, exit immediately.

Operational Summary:
Open long near 2,116, set stop loss at 2,095, target the first at 2,135. This is a short-term trade aiming to profit from oversold correction.