[ETH] chart market

1D
Almost all cryptocurrencies, including Ethereum, have experienced a significant decline.
The 2879 support line, which should not have been breached, was broken through by a vertically descending long bearish candle.
2,879 will change from a support level to a resistance level.

The moving averages are still in a reverse arrangement just like yesterday, and there are no bottom signals.

The only point that can be entrusted with expectations is when checking the selling pressure area through the fixed range trading volume distribution chart, the green-marked segment, which indicates that the current price range is at the upper end of the thickest selling pressure area.

At the current stage, the best scenario is no further decline, consolidating within this price range, similar to the situation from August to November 2024, gathering moving averages, and then diverging the trend again; this would be the optimal scenario.

4 hours
When the market conditions were released yesterday, it showed a breakout of the downward trend line and candles stabilizing above the middle line of the Bollinger Bands in the 4-hour timeframe, which performed quite well. However, seeing it immediately drop vertically suggests that these performances were just a ruse for liquidity sweep.

As a futures trader who needs to operate repeatedly, especially if you are a friend who is going long, although it is a bit regrettable, if you set a stop loss below the middle line of the Bollinger Bands, you should be able to exit smoothly with a small loss.

However, since we are going to trade, if we are to set a standard, I believe that the low point of 2,635 will now become the bottom line.

If it falls below this level, the bottom of the green box is around 2,390, which would lead to a significant decline of about 9~10%. Therefore, if you trade without a stop-loss, you may experience a feeling of heat in your head.


aggressive traders

Based on the selling area above and the previous low points, set a slightly adjusted stop loss and enter the position.

Conservative traders

Confirm the breakout of the downward trend line, and enter after confirming the breakout at 2,879.
This standard can be set like this.


I think short-term traders can wait a bit until the price approaches the 2879 resistance line, observe if there are any upper shadows or trend reversal candles appearing, and then set a stop loss above the resistance line and enter the position, or chase by breaking below the previous low, which can make trading easier.

In the 4-hour timeframe, when the candlestick is below the 200 EMA, it will continue to face resistance. Therefore, if you hold spot positions, it is recommended to actively use short positions in futures for hedging.

The responsibility for all investments lies with the individual.
Reference: )