ETH after Saturday's dump: CME gap and potential rebound at open

Outputs often become the source of unexpected movements in cryptocurrency markets. After Saturday’s Ethereum dump, there is an objective risk of a significant price gap at the CME opening on Monday. Usually, such gaps are partially closed over the weekend, but it’s not always possible to fully eliminate the discrepancy before the start of the weekly session.

CME Gap Risk and Technical Outlook

When the price makes a sharp move during the weekend, investors and traders on traditional US markets are left without the ability to respond adequately. As a result, CME opens with a gap down of several percent, leaving a candlestick gap behind. The likelihood that the gap will be fully closed depends on the strength of the move and the behavior of major market participants.

Moving Averages Signals and Recovery Potential

An interesting technical point: if the gap does indeed close and the markets turn upward, the moving averages (MA) of all major assets will take on a curved shape indicating a transition into an uptrend. History shows that such formations often signal intense recovery growth. This means that a scenario of a wild rebound from current lows remains on the table.

Bear Positions and Bull Counterattack

Bears have already secured profits from the weekend decline. However, bulls still have the potential to strike from below. The market is at a point of force convergence, where any strong buying momentum can reverse the situation. The coming hours and days will show whose will is stronger. Market participants should prepare for volatility and clearly define entry and exit levels before the weekly session opens.

Good luck with trading and making balanced decisions when managing positions!