Li Ying in the Crypto Circle: Will Ethereum End its Bullish Trend and Start a New Downward Trend on 12.20? Latest Market Analysis

Article Published on 2024.12.20----02:00 AM

Ethereum is currently priced at 3480. Ethereum bulls are facing liquidation as the main players start to take profits. The short position at 4050 has already taken profits when it retraced near 3700. Now at 2 AM, it has liquidated and directly fallen below the 3400 support level. The bullish trend has turned bearish. With shorts coming in, how will the market move? Will it end the bullish trend or open a new bullish trend again?

Let's look at the current market situation, starting with price trend analysis. The K-line pattern on the order book clearly shows a downward trend, especially the large bearish candles on the 19th and 18th which indicated strong selling pressure. In the 4-hour cycle, the price has gradually fallen from a high of 3908 to around 3520, forming a series of lower lows and lower highs. The technical indicator MACD in the 4-hour cycle shows that the MACD histogram remains negative and is expanding, with both DIF and DEA diverging downwards, indicating strong bearish momentum.

The current RSI value for the relative strength index is 27.54, situated in the oversold range, suggesting there may be a need for a short-term rebound, but overall it remains weak. The trend indicators EMA7, EMA30, and EMA120 are all arranged bearishly, with the price running below all moving averages, showing a clear downward trend. The increased trading volume intensifies market selling pressure. Recent volatility has been significant, accompanied by price drops when volume increases, indicating a bearish market sentiment. In the short term, the strategy can be to short on highs and long on lows, currently leaning towards bearish positions.

Today's Latest Reference Points

Long Entry at 3400, Add at 3350, Stop at 3300, Target at 3650

Short Entry at 3650, Add at 3700, Stop at 3750, Target at 3450

The above analysis by Li Ying is based on market data and trend analysis from the order book and does not constitute investment advice. For reference only $ETH #以太坊行情分析