Although the current net inflow of ETH has reached $151 million, the total open interest is as high as $3.69B, and the funding rate is a barely positive 0.0032%. This indicates that a large amount of leveraged long positions have accumulated in the market. Against the backdrop of a stalled high price, it can easily trigger a cascade of long liquidations, providing ample momentum for a downward shakeout.

The 4-hour candlestick chart shows that ETH suffered a heavy setback after hitting $1,645.86, leaving a very long upper wick at the high. This indicates strong overhead supply and bearish pressure above that level, with the long rebound already running out of steam. The price is currently consolidating under pressure around $1,621, with the price center shifting downward, clearly showing a short-term top and downward trend.

Trading Strategy

Go short near 1625-1635, target 1600-1580-1550, stop loss 1650$ETH