Will Ethereum's market experience severe volatility on 12.19? How should you respond during a rapid decline?
The current price of Ethereum is 3700, and it is now 5:35 AM Beijing time. Before the report was published yesterday, Ethereum was at 3940, and it has now dropped more than 200 points. I have said that the market is always full of opportunities; as long as we protect our chips, the train we are waiting for will naturally arrive. The major support point is approaching; whether it can be reached is still uncertain. Just wait; do not chase the rapidly rising or falling market, wait for the decline to stop before acting.
The daily K-line had a highest of 3910 and a lowest of 3630, breaking the EMA30 support at the key point of 3645. The short-term bearish trend is very strong, with MACD decreasing in volume, and DIF and DEA still expanding at a high level. The Bollinger Bands are showing contraction, and the K-line has retraced and broken below the middle line of the Bollinger Bands at 3815. Pay attention to the lower support point at 3540 as a trial entry point for long positions. After the KDJ crosses downwards, it starts to expand. Overall, in the context of a sharp decline, wait for the decline to stop; do not engage in chasing highs and cutting losses to prevent the main force from liquidating both sides.
The four-hour K-line has already broken below the EMA120 trend indicator support at 3770, which has now turned into a resistance level. MACD is decreasing in volume, and DIF and DEA have fallen below the 0 axis. The lower Bollinger Band at 3750 has been breached, and the K-line has entered an oversold phase, not far from extreme overbought. Be prepared to enter decisively at the position without hesitation. Those looking to short can pay attention to the support zone in the range of 3550 to 3500; if it holds, you can take profits again. Conservative traders can enter in this range, ensuring proper position management.
Short-term reference: Safety first; remember that the market is never 100% certain, so always use stop-losses. Safety first, small losses for big gains is the goal.
Trial short entry point: 3750 to 3800, stop-loss 50 points, target at 3700 to 3650, break point at 3600 to 3550.
Trial long entry point: 3550 to 3600, defending at 3500, stop-loss 50 points, target at 3650 to 3700, break point at 3750 to 3800.
