Good evening friends at the square, there are less than 4 hours until the US stock market opens. Here’s a note on the ETH tunnel consensus, which is in a bearish trend on both hourly and daily levels. The market is currently in a critical area of volatility.
According to the indicators shown in the figure, key observations are as follows:
1. Supply Zone (SUPPLY ZONE) and Demand Zone (DEMAND ZONE):
The upper supply zone (SUPPLY ZONE) is clearly marked between $3602 and $3626, forming strong short-term pressure. The support level of the lower demand zone is concentrated in the $3310-$3330 area, and the current price is attempting to test the reliability of this level.
2. Moving Averages and Dynamic Support:
The chart shows multiple moving averages (short-term yellow line, medium-term green line, and long-term blue line) exhibiting a clear bearish arrangement, indicating that the overall trend still leans towards downward. The thick band in the red area shows stronger dynamic pressure, meaning that if the price rebounds to this level, it will face significant resistance.
3. Volume Divergence:
From the volume bars at the bottom of the chart, we can see that price fluctuations during the consolidation period are accompanied by volume changes, especially with larger volumes occurring when touching the supply zone, indicating heavy selling pressure.
Due to the low liquidity and potential volatility before Christmas, the current market uncertainty is quite high. The low liquidity during the Christmas holiday exacerbates the volatility risk, so it is recommended to operate with light positions and maintain sufficient capital flexibility. Short-term traders can adopt a buy low, sell high strategy within the key support and resistance range, but they should be cautious of false breakouts that may lure in buyers or sellers. Swing traders can patiently wait for clear trend signals after the holiday market returns to normal liquidity before making medium-term arrangements.
Finally, I wish all friends at the square successful trading! Merry Christmas in advance 🎄