Cryptocurrency Liying: Ethereum continues to decline on December 22, should we blindly short or continue to build long positions? Latest market analysis

Article published on 2024.12.22----1:20 PM

Current price of Ethereum is 3319, the continuous rise can easily lead to confusion and loss of rationality. Liying set up a short position after breaking 4000, originally planning to exit at 4130, but unexpectedly held on until 3400. The long positions have been liquidated twice at the entry points chosen by the main force. Let's be rational, there are no invincible generals. After experiencing two instances of being stopped out on long positions, we must first consider whether the bulls are still present, and whether the main strategy is to go long or short.

Looking at the market, Liying still analyzes the price trend. The current candlestick pattern shows a clear downtrend, especially after the significant drop on the 20th and 21st. The current price is oscillating at a low level. In the 4-hour timeframe, several small bearish candles with long upper shadows indicate significant selling pressure above. Furthermore, looking at technical indicators, both the current DIF and DEA of MACD are negative and relatively close, and the MACD histogram shows slight shortening, indicating that bearish strength is weakening, but no clear reversal signal has formed yet.

The Relative Strength Index (RSI) is currently around 36, close to the oversold zone, which may indicate a need for a technical rebound, but overall it still leans towards weakness. The trend indicators EMA have fallen below EMA7, EMA30, and EMA120, showing a bearish arrangement in short-term, medium-term, and long-term moving averages, indicating a strong downtrend. The distance between EMA7 and EMA30 is gradually widening, further confirming the downtrend. The gradual decrease in daily trading volume indicates that market sentiment is becoming cautious. The large fluctuations in 4-hour trading volume, characterized by cycles of increasing and decreasing volume, are typical bearish indicators. Liying suggests waiting for the bearish trend to end, primarily focusing on going long at low levels, or waiting for a pullback to the previous highs before considering shorting.

Today's latest point of reference

Long entry point 3250, add 3200, stop 3150, target 3400

Short entry point 3400, add 3450, stop 3500, target 3250

The above analysis is based on market data and trend analysis by Liying and does not constitute investment advice. For family reference $ETH #以太坊行情分析