ETH just broke through the 3300 threshold, presenting an interesting scene in the market.

On the surface, it looks like a surge, but a closer analysis reveals that every detail tells a story.

**Key signals in the current market:**

The 1-hour RSI has soared to 87. What does this number represent? Not strength, but a serious deviation on the technical side. Imagine a rubber band stretched to its limit; the next reaction is usually one direction—rebound.

Even more peculiar is the funding rate. The price skyrockets, yet the funding rate is only 0.003%? Normally, such a rise should attract a lot of retail traders to chase the long side, but data shows that’s not happening. What’s driving this surge? Forced liquidations of short positions. The main players are essentially stepping on these forced liquidations, pushing the price up with the least amount of money.

The most brutal part is the behavior of large traders. The price pushes higher, but their long-short positions are decreasing. What does this indicate? The main players are quietly offloading their positions at high levels, using this short squeeze to generate liquidity.

**The current trading advice is simple:**

FOMO into the market? Don’t even think about it. Chasing longs at RSI 87 is like catching the last wave of a market. If there are still shorts alive, don’t close your positions now. Such extreme overbought conditions on the technical side suggest a pullback to around 3260 is highly probable. Staying alive means staying hopeful.

This market movement is not the start of a new bull run, but a short squeeze liquidation wave. When the fireworks are at their brightest, it’s often time to consider exiting.