Ethereum surges 11% in a violent rally! Rebound or reversal? Key points to watch

Today, Ethereum's rapid rise from the 2150-2395 range (the lowest point up 11.4%) has indeed left many traders breathless.

The market shows a layered pattern: first a technical correction after being oversold, supported at a key support zone, then combined with large capital bottom-fishing and short-term profit-taking, creating resonance. This finally broke the vicious cycle of【decline → forced liquidation → further decline】that had persisted for the past few days.

In simple terms, after market sentiment hits extremes, there will always be someone who remains calm. When panic selling subsides, some funds start recognizing the value at this level, and buying naturally emerges. Once the rebound triggers some short positions to be stopped out, it can easily lead to a short-term【rebound → short squeeze → further rebound】positive feedback loop. This script is all too common in leveraged markets.

Currently, everyone's most concerned about whether this is just a technical rebound after a sharp decline or the beginning of a trend reversal.

My view is that, although an almost 11% increase in a single day is fierce, a true trend reversal still requires more signals for confirmation. The key is whether Bitcoin can stabilize simultaneously and whether macro factors (such as Federal Reserve policy directions) align. Additionally, whether trading volume continues to grow, and whether funds are steadily flowing in through compliant channels like Ethereum ETFs, are important points to observe moving forward.

The market always cycles through human weaknesses and the amplifying effects of leverage. This time, it once again proves that: the sharper the fall, the more fierce the rebound often is.