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      Market Oversold—Positioning for a Potential Mean-Reversion Bounce

      Eva Chen

      Cryptocurrency

      Summary:

      Amid a broad-based risk-off wave, Ethereum’s short-term decline has accelerated. Long liquidations exceeded $140 million in 24 hours, flagging acute sentiment deterioration. Having retraced 46% from its cycle high, ETH is now trading deep in the extremely-oversold bucket. A test of the $2,500 structural support could set the stage for the next relief rally.

      Buy

      ETH-USDT

      EXP
      PENDING

      2500.00

      Entry Price

      3186.00

      TP

      2100.00

      SL

      2916.18 +69.68 +2.45%

      --

      Point

      PENDING

      2100.00

      SL

      CLOSING

      2500.00

      Entry Price

      3186.00

      TP

      Fundamentals

      Since mid-October, risk assets have been whipsawed by data-light conditions in the U.S., leaving the macro narrative opaque and discouraging fresh risk-taking.
      After the early-October rallies in BTC, SOL and ETH, crypto derivatives began flashing distribution signals. Coinglass data show $170 million in total ETH liquidations over the past 24 h, of which $142.8 million were long-side forced closures.
      With ETH now around 46% below the August swing high of $4,950, speculative excess has largely been unwound.
      Market Oversold—Positioning for a Potential Mean-Reversion Bounce_1

      Technical Analysis

      Friday’s session extends the downtrend. ETH remains heavily offered sub-$2,700. A decisive break of $2,650 opens a straight-line path toward the $2,500 daily demand zone.
      Meanwhile, the level coincides with the measured move target of the inverse head-and-shoulders base, raising the probability of a sharp mean-reversion once satisfied.
      On the upside, ETH must first reclaim $3,100 and then close above the EMA20(currently $3,130) to validate a leg toward the next resistance cluster at $3,470.
      Momentum oscillators have entered the oversold zone, which signals a rising probability of a bullish momentum trigger.

      Trade Recommendations

      Trade Direction: Buy
      Entry Price: 2500
      Target Price: 3186
      Stop Loss: 2100
      Valid Until: December 8, 2025, 23:55:00
      Support: 2642/2556/2529
      Resistance Levels: 2883/3060/3153
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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