I’ve been watching this pop in ETH while simultaneously punching my FOMO in the face (Trust me: It deserves far worse). Here is a comparison of price/shorts of this last five day move (that has CryptoTwitter all excited):
Yellow area = Shorts covering (taking profits). Price picks up. Retail gets excited, buys the move.
Green area: Retail chases the momentum, pros rebuild short positions/take long trading positions.
Red: Shorts cover, longs take profits, retail holds the bag for them.
I may well be wrong here, but I can’t figure another reason why price is declining while shorts are covering in the last 24 hours. Price is also highly correlated with short positioning for the last 48 hours, it should be inversely correlated. I’m expecting another leg down from here. IMO we still haven’t seen a proper “capitulation climax” yet. If I miss buying the bottom, I’m OK with that.
As usual, this is opinion, not advice. Don’t take trading or investment advice from anyone on the Internet without the proper government & industry stamps of approval, which I have none of. Do your own research.