Currently, there are two tendencies in the exchange rate of Ethereum
The first is to form a head and shoulders bottom, how to judge? (Figure 1)
This means that in the upcoming daily candle trends, if the price first rises and levels with the previous exchange rate peak, followed by a decline, then one can consider going long on Ethereum around 0.036-0.035, with the price likely rebounding and breaking through near 4000, and pulling back to 3650-3700 while looking bullish towards a new historical high.
The second is to form a head and shoulders top, how to judge? (Figure 2)
This means that in the upcoming daily candle trends, if the price shows successive pullbacks, and each rebound peak does not exceed the previous high, and if the exchange rate starts to show selling pressure around 0.0385-0.0390 with formations like shooting stars, evening stars, or dark clouds covering the top, then one can consider going short directly. If one wants to touch the peak on the left side, they need to bear a considerable risk. 3850 is a good position, with a stop-loss of 30 points, while the target is to look for a new low in the exchange rate.
As for Bitcoin, while its market share continues to decline, the price remains solid at high points. The decline after the CME futures closed early on Saturday morning is almost being recovered, which can be understood as a rise to repair the drop gap (Figures 3 and 4).
More analysis on Bitcoin will be covered in tomorrow's video explanation. Currently, it's safer to do less and observe more, as the current trend lacks continuity. The greed index remains at a high level, and while the short-term candlestick price looks bearish, shorting is not recommended. The reason is that many individuals have a common issue of getting trapped in sunk costs.
Perhaps sometimes, placing a stop-loss may lead to an awkward situation where the price returns but the position is gone.
However, more often than not, when we look back, stop-losses can be seen as another form of profit.
So it is essential to trade methodically, regardless of bullish or bearish positions.