Market Review
Ethereum's recent daily chart has seen a series of negative flash crashes, forming a strong bearish engulfing pattern.
technical analysis
Daily chart
Overall trend: A strong bearish engulfing pattern is formed at the daily level, with no obvious long support position below.
Pressure level: After the price continues to fall, the selling pressure continues to move downward. The current pressure strength can focus on the 3180 line.
Four-hour chart
Bollinger Bands: After the price fell in the Bollinger Bands opening, it bottomed out near 3040 and rebounded. Currently, the price remains at 3100 trying to stabilize.
Top and bottom conversion pressure: The high level of 3210 forms a new top and bottom conversion support pressure.
Recommendations
Robust Strategy
Hold short positions and wait and see: Given that the market is in a strong downward trend, it is recommended to hold short positions and wait and see to avoid unnecessary risks.
Aggressive Strategy
Short on rebound: If the price rebounds, aggressive investors can consider shorting in the 3180-3210 range, with the target at 3040 and the stop loss at 3250.
Summarize
Ethereum is currently in a strong downward trend. Investors are advised to wait and see when the market fluctuates greatly. Prudent investors can wait and see with empty positions, while aggressive investors can focus on short-term rebound opportunities and flexibly adjust their operating strategies to ensure the robustness and security of transactions.