This drop of more than 200 points was mainly triggered by the liquidation of long positions, and the main capital has not made any significant moves. We are back around 2950, waiting for new opportunities to short. Do not go long; the most likely scenario is a dead cat bounce, and a crash is the trend.
I do not recommend shorting Ethereum at the moment, as the main force has not yet exerted itself. I believe there will be another surge, and the surge position should be above the upper band on the 4-hour chart, which is roughly above 3100. This should be the best position to short $ETH
The main force is pushing the market, but don't be fooled. This is the early stage of a bear market, and it could turn down at any time. I believe that shorting on rallies is the way to go, and opening a short position around 3100 is the safest bet. $ETH
Regarding the callback, my view is that it may return to around 3500 or even higher. I will gradually start building short positions near 3450. Overall, I still see it as bearish. Shorting on the highs is the safest strategy, and long positions should be light with good stop losses.
Currently, this is the worst time to open a position; it's entirely a gamble on direction. This is when human nature is most tested; patiently waiting is the only correct choice. If the short-term bears are strong, you can wait around 3120 to go long and make a pullback order. If the bulls win, you can set up a short position above 3450. The current market situation is in a stalemate between bulls and bears, making it unsuitable to open a position. $ETH
$ETH did not manage to break below 3000 as hoped. In the short term (two to three days), a correction is expected, preparing for the next attempt to challenge 3000. The correction position is estimated to be above 3300. It is expected that before truly breaking below 3000, there will be a counterattack, with the position likely around 3100. For a conservative approach, one can wait for positions to start building short orders above 3300, while a more aggressive approach can consider opening long orders, with the defense set around 3090.
It has already started to fall, hoping it can break below 2900 The layout for the rebound order can refer to the 4-hour chart. This time, even if it does not break below 2900, it should fall below 3000. Here is the lower bound of the 4-hour chart. For long orders, refer to the upper bound of the Bollinger Bands. A technical rebound should reach this position.
Ethereum and Bitcoin have often understood the trend, but improper operations lead to being played and then getting washed out. Of course, the more important thing is one's own inner demons: greed and fear. Traders who can profit in the long term are certainly remarkable.
$ETH First, we need to see if the position at 3000 can hold. If it cannot, it may test 2800, or even lower. If it holds, there will be another round of technical rebound, and then a renewed downward push. The new technical rebound position is still likely to be suppressed by the middle track on the 4-hour chart. This time, I think the possibility of breaking below 3000 is very high, and I hope it goes as expected.
At least up to now, the Ethereum market trend is almost identical to the trend at the end of 2021, so what will tomorrow's market be like? I'm willing to take a gamble on shorting, preparing to open a short position between 3650 and 3750. #$ETH