Crypto Circle Scholar: How to Find a Breakthrough in Ethereum's Extreme Consolidation Market on 12.26?
The current price of Ethereum is 3480, and it is now five o'clock in the morning Beijing time. The hardest thing for trend traders in this kind of market is to endure, while the most comfortable thing for swing traders is to operate. Range-bound markets are only suitable for swing trading. From above 3500 to below 3460, although there is only a 40-point space in this range, swing trading can capture six to seven times a day, totaling nearly three hundred points back and forth. However, the risk is indeed greater than the reward, so I do not recommend trading in such a 40-point range, as excessive long positions will narrow your understanding.
The daily K-line is currently facing resistance at the intersection of EMA30 and 15 at 3550, which I mentioned in yesterday's article as a strong resistance. The lowest point is 3440, which has not yet retraced adequately. If the retracement depth is insufficient, it is not suitable to enter; you can continue to wait for opportunities. Pay attention to EMA60 support at 3370 and 0.618 support at 3325 as two entry points for upward movement. MACD has been contracting continuously, and the polarization of DIF and DEA continues to stabilize. The Bollinger Bands are opening, and the K-line adjustment is focused on the middle track resistance at 3710, while the overall trend remains unchanged in the consolidation market.
The four-hour K-line is currently in an extreme consolidation market, adjusting above the EMA30 support level at 3450. The EMA trend indicator is still in a contraction phase, with MAD continuously decreasing in volume. The polarization of DIF and DEA indicates that the bullish direction has not yet been determined. Currently, 3550 has strong resistance, and there is a possibility of a short-term pullback. The upper pressure of the expanding Bollinger Bands has reached 3565, and the middle track support is focused on defending 3400 and the lower track support at 3245. From the current market perspective, traders choosing to go south above 3500 can continue to hold and pay attention to whether 3450 can break through. If it does not break, consider exiting; if it breaks, you can continue to expand your gains downwards.
Short-term reference: Safety first, remember that there is no 100% in the market, so always set stop losses. Safety first, small losses, large profits is the goal.
Upward trial entry point 3350 to 3300, defending 3250, stop at 50 points, target at 3400 to 3450, if broken, look at 3500 to 3550.
Downward trial entry point 3550 to 3600, defending 3650, stop at 50 points, target at 3500 to 3450, if broken, look at 3400 to 3350.
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