$ETH
Recently, the market first welcomed a phase of upward correction, with prices gradually rising, bringing a glimmer of hope for a bullish comeback. However, the good times were short-lived, as the upward process quickly encountered strong resistance at the middle track, causing prices to fall back.
Although the bulls initially showed signs of attempting a reversal, with prices rising accordingly, they ultimately lacked follow-through. From the volume indicators, trading volume failed to sustain an increase, making it difficult to support further price rises, which directly led to the bulls' counterattack being merely a fleeting moment, after which the market fell into a downward channel.
This series of movements further solidified the current weak market pattern, as the previous decline has significantly harmed the market, leading to noticeable losses. At this stage, while the short-term market has a certain repair demand due to overselling, and prices occasionally rebound, under the overarching bearish environment, such repairs are unlikely to translate into a strong upward trend. Each time prices rise to relatively high levels, they face heavy pressure from above and fall back under pressure.
The daily K-line oscillated around the EMA60 trend line at 3370 for four days, temporarily breaking below EMA60. We should wait for a further drop to the EMA90 support at 3245 before considering moving upward. For now, we continue to wait. If the main players choose to continue sideways oscillation, we can take this opportunity to rest and celebrate the New Year peacefully. The EMA trend indicators are still contracting, including MACD also contracting. The Bollinger Bands are in a downward channel, with the K-line fluctuating within, not touching the middle track at 3595 above, nor the lower track at 3110 below. Such a trend is quite intriguing.
The four-hour K-line has contracted even more significantly, forming a typical symmetrical triangle trend. As long as it does not break above 3430 or below 3300, we are in a wait-and-see period. The EMA trend indicators are contracting, with MACD volume contracting, and DIF and DEA oscillating below the zero axis. The Bollinger Bands are contracting, narrowing the long and short distance, with the upper track at 3420 and lower track support at 3300. The overall trend is basically as expected, and we will wait and see until the trend establishes itself before making further decisions.
