Li Shengting: Ethereum Market Analysis and Trading Ideas on 12.22
Today, Ethereum rebounded to the high point of around 3553, but after hitting resistance, it began to decline. At the same time, the price did not break through the upper resistance level of the MA5 moving average. Instead, the price fell again. From the daily technical indicators, the KDJ and MACD indicators show a dead cross downward structure, and the DIF indicator strengthens the degree of decline. Additionally, today's daily K has also formed a long upper shadow. Currently, it seems that the selling pressure above is quite strong, and the BOLL indicator continues to operate near the lower band. If the decline this morning is not very strong, then at 8 AM, we may see a new round of bearish sentiment. Currently, both the MA5 and MA10 moving averages are in a震荡下行 trend, while the MA30 moving average has a significantly weakened upward momentum, but it has not yet linked with a bearish volume increase. Once the MA30 moving average resonates with the bears, it will accelerate the downward force.
From the 4-hour technical indicators, the KDJ and MACD indicators are attempting to transition from a bearish contraction phase back to an expansion phase. Currently, the DIF and DEA continue to decline, and the overall BOLL indicator is widely opened and trending downward, indicating that short-term bearish sentiment has not ended. Although Ethereum has appeared as a red TD9, Bitcoin is decoupled and has not shown any correlation. The MA three-day moving averages continue to decline in different amplitudes, and the TD8 round did not damage the strong pressure above. Subsequently, TD9 continues to decline, indicating that short-term selling pressure is very strong. Regarding the current TD9, it will either experience a slight rebound to repair the red TD9 this morning, followed by an update at 8 AM that brings out a new red TD1 for continued volume decline, or this round of TD9 may continue to move in one direction in a lagging manner.
Overall, I still hold a bearish view for this morning and tomorrow afternoon. The key support for the lower low remains in the 3114-2900 area.
The above is my personal analysis of the market this morning, for your reference only.