ETH weekend sell-off triggers CME gap risk, bullish rebound opportunity takes shape

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Ethereum experienced a significant sell-off over the weekend, which has planted a key hidden risk for the CME market on Monday—price gaps. This phenomenon of gaps after weekend sell-offs is not uncommon, but the key issue is whether they will be quickly filled or evolve into new trend signals. Usually, if the gap size isn’t too large, the market will naturally correct and fill it between Sunday and Monday. But this time, the situation might be different.

Technical Pattern Signals a Bullish Move

More worth paying attention to are deeper technical signals. The current moving averages of major mainstream assets are forming a clear curve pattern, which has historically been a precursor to strong upward movement. If this week’s gap is effectively filled and the market then breaks upward, this signal line will give a clear directional indication—uptrend is the main theme. While this scenario isn’t highly probable, if it occurs, the rebound could be quite substantial.

Short-term Profit Pressure vs. Bullish Ambitions

From the participants’ perspective, the situation is becoming interesting. Those shorts who successfully capitalized on the weekend sell-off can temporarily take profits. But don’t celebrate too early—the strong players among the longs are far from out of the game, and they have ample reason to gather for a counterattack at this level. Many historical lows have been fiercely reversed during moments when shorts become overconfident.

Therefore, the next few days will be crucial. Either the gap gets filled and the uptrend is confirmed; or the decline continues, extending the sell-off. Either way, it will be an excellent trading opportunity. Manage your risks well, and best wishes for good luck and gains!

ETH-2,36%
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