Crypto just had its worst week since FTX — watch for a relief bounce on Ethereum
Thesis
When an asset drops this far this fast, it usually triggers a short-term bounce as the sellers exhaust themselves and bargain hunters step in. The panic here is driven by forced liquidations, not necessarily a change in the underlying technology. Looking for a quick rebound trade on Ethereum makes sense once the intense selling pressure cools off. This is a bounce play, not a long-term hold, because the overall trend is still clearly downward.
Strategy approach
Build a mean-reversion long strategy for ETHUSDT on the 4-hour timeframe. Entry conditions require the 14-day RSI to be below 25 (extreme oversold) and the price to be at least 20% below the 20-day moving average. Exit when RSI crosses above 60 or after 10 trading days. Use a tight 5% stop loss to protect against further downside.