In-depth analysis of Ethereum (ETH) and Bitcoin (BTC) market
With the arrival of May 20, the market's attention is once again focused on the market of Ethereum (ETH) and Bitcoin (BTC). After last week's precise layout, we found that the strategy of shorting Ethereum still has a very high reference value in the current market. Although the market volatility over the weekend is relatively small, it is expected that there will be a large market change tonight, so timely layout is particularly important.
From the trend chart of ETH, we can observe three obvious parallel lines. During the day, the market briefly broke through the top of the trend line, but failed to stand firmly in this position, but quickly fell back between the two trend lines. At present, the trend line shows a downward shift, which provides us with a clear signal for shorting. As long as the ETH price fails to successfully break through and stand above the trend line, especially failing to break through the key pressure level of 3100, shorting will still be the main strategy.
However, we should also note that the market is always full of variables. If the ETH price can successfully break through the top of the trend line and stand above 3100, the general direction of the market may turn to long. Therefore, in operation, we need to be vigilant and ready to adjust the strategy at any time.
Judging from ETH's 4-hour technical indicators, the MCD indicator originally showed a trend of reversing and closing in the red, but then turned downward, which shows the strong bearish sentiment in the market. The KDJ indicator is about to cross, but its direction is still unclear, which provides us with a certain reference, but it is not a decisive factor. The OBV indicator continues to move downward, further strengthening the bearish view. Based on various indicators, the current market shows a relatively obvious bearish trend, and shorting on highs is still a more reasonable choice.
Based on the above analysis, we have formulated the following strategy for evening operations: It is recommended to start shorting when the ETH price reaches around 3095-3105, with a target price of 3050. If the market fluctuates violently, you can pay attention to the pin situation near 3013. Of course, in actual operations, please be sure to make flexible adjustments based on your risk tolerance and financial situation.
