Cryptocurrency Market Analysis: Is the Ethereum drop on 11.27 just negative feedback? What does the bull market correction indicate? Latest market analysis

Article published on 2024.11.27----01:30 AM

Current price of Ethereum is 3328. After taking profits at the previous high, the short position strategy was realized after breaking below 3300. This continuous trend has been almost spot on in this month's bull market, especially with the main force's clear tactics. The current formation of a triple top indicates a potential pullback, and the depth of the pullback is accompanied by the bullish sentiment attracted by the previous market hype. The main judgment is to clarify this wave; after clearing, continue with the bullish strategy. There will definitely be a rebound, and sector rotation will also occur. The question is how to act and plan to not miss this wave.

Liying still analyzes from the price trend perspective. You can see that the K-line shape shows a short-term price pullback at a high level, forming a short-term downward trend. As long as the bulls do not break below 3000, market sentiment will not end. The short-term pullback is a normal phenomenon of profit-taking by the main force. The market cannot always move in one direction; after a prolonged bullish phase, a digestion period is necessary. The technical indicators MACD currently show both DIF and DEA as negative values, and the MACD histogram displays green bars, indicating a dominant bearish force, but there are signs of convergence, suggesting that this market wave has almost digested.

The Relative Strength Index (RSI14) is close to 50, in a neutral zone, not clearly entering overbought or oversold territory. Additionally, the trend indicator EMA7 has crossed below EMA30, and the price operates below EMA7, indicating a short-term weakness. However, EMA120 is still trending upwards, which aligns with Liying's view that the long-term trend remains bullish. Looking at the increased trading volume, the market's activity level rising with volatility is normal; lack of volatility would be strange. Therefore, Liying suggests waiting for this wave of bottoming to conclude before seeking opportunities to continue leaning towards bullish positions and not considering short positions until the key resistance level above is reached.

Today's latest reference points

Long position entry at 3150, add at 3100, stop at 3050, target 3300

Short position entry at 3450, add at 3500, stop at 3550, target 3350

The above analysis is based on market data and trend analysis from the order book by Liying and does not constitute investment advice. For reference only.