ETH and a huge dump after the weekend: when to expect a market reversal

Weekends often bring dramatic price movements in the cryptocurrency markets. When a major sell-off wave occurs specifically on Saturday or Sunday, it creates a classic scenario for a Monday gap on CME. It might seem like a clear sell-off, the end of a rally. But that’s not always the case.

Weekend Gap: Why CME Gaps Are So Important for ETH

Typically, the market tries to balance the price gap within a day or two before the trading week begins. If the discrepancy between the weekend price and the expected opening on CME on Monday isn’t critical, the chances of it closing remain high. In other words, the sell-off could just be a technical market cleanse before a significant move.

Moving Averages Signal: Growth or Deception?

Against the current backdrop, attention should be paid to the behavior of key asset moving averages. When they take on a curved, clearly upward shape, this historically most often signals an acceleration of growth rather than a continuation of decline. Such a pattern may indicate that the sell-off was the final phase, not the initial correction.

From Bottom to Jump: Who Will Take the Prize

If the current gap is closed and the market indeed bounces upward, we will see a typical quick rebound scenario from the lows. Bears who profited from yesterday’s decline will face the rebound, but the bulls are already preparing a counterattack. This is a classic confrontation — and under current conditions, the advantage may shift to the longs.

The sell-off has passed, but the week is just beginning. Watch for technical signals and support levels.