Daily Analysis of #ETH

1️⃣ Structural interpretation: When Bitcoin faces significant uncertainty, ETH's short-term independence is limited. However, attention should be paid to the death cross on the 1-hour chart; the next step is whether to consolidate sideways or to experience a downward correction.
2️⃣ Capital Flow & On-chain & Exchange Dynamic Exchange Dynamics (Market "Sentiment" Thermometer): In the past 24 hours, the liquidation amount of short positions in Ethereum was $34.8348 million. This indicates that bearish traders in the ETH market have also been impacted.
3️⃣ Day trading strategy: we should at least look for a pullback during the day. If the 1-hour chart shows a sideways trend, we will wait for the sideways adjustment to complete before considering going long. If the pullback occurs in a downward manner, we will patiently wait for the key support level before going long. In short-term trading, if the market is around 2900 and bullish candlestick signals appear, we can try going long with a small position. Currently, I lean towards a bearish direction.
4️⃣ Risk Warning Market Correlation Risk: The price movements of ETH and BTC are highly correlated. If Bitcoin experiences a significant drop due to whale sell-offs, ETH will face substantial associated downside risk. Liquidity Risk: When the market experiences concentrated sell-offs due to panic, liquidity may be depleted instantly, leading to excessive slippage on orders or the inability to execute trades at desired prices.