Recently, BTC and ETH have both fallen sharply, with ETH dropping nearly 15% from its high of around 4800. Just after the US stock market opened, the Nasdaq plummeted, and BTC and ETH followed the decline but then stabilized and rebounded, showing bottom signals. Is it a good time to buy the dip? Has the major correction ended?

Currently, ETH at 4060 and BTC at 112500 are approaching the medium-term adjustment level. There is an expectation that ETH may rebound to 4380-4550. Buying the dip now is only for a short-term rebound, and a stop-loss of 3920 should be set. If BTC breaks below 110000 effectively, it will directly trigger a deep adjustment.

Bullish Reasons in the Short Term:

ETH has experienced consecutive rapid declines, filling the CME gap.

3960-4060 is where ETH started to accelerate upward after the 401K pension bill, and there is a large amount of institutional fund buying here, which suggests a possible rebound.

Recently, the funding rate in the futures market has been negative, indicating strong bearish sentiment; also, the fear index has dropped to 41, entering a panic state.

Technically, 4060 is the long-term upward trend line support, and ETH has shown multiple divergences on the 4-hour chart.

The USDT market share has rapidly increased and reached a strong resistance level. The market share faces an upward resistance, indicating that further market decline will be difficult.

In terms of rebound targets, the major resistance above is at 4380 and 4550. Before 4600 is firmly held, it is still considered as a rebound.

Author: Aaron, ChainThink