Ethereum Market Analysis on January 7th

Bitcoin has once again surpassed the 100,000 mark today, with Ethereum closely following. Although the percentage increase has not kept pace, it has stabilized above the resistance level. Therefore, according to subsequent thoughts, the market will likely experience a strong upward move in wave C (the momentum will be relatively strong).

As for the market trends in the early morning and tomorrow morning: Currently, the price has risen to near the upper Bollinger Band (note that the upper band has not opened, which means there may be a technical correction with a possible range drop in the early morning. However, the strength of this correction will not be too strong, as both Bitcoin and Ethereum have effectively broken through the resistance level and stabilized. Bitcoin has also firmly stood above 100,000. Therefore, the adjustment is likely to be for technical repair and correction).

At the 12-hour level, both Bitcoin and Ethereum have stabilized at TD9, but the subsequent candle did not undergo a repair, on the contrary, it saw a significant increase in volume (indicating a market reaction against the TD9 indicator). This suggests that we should not generalize technical analysis; it is essential to analyze the current technical situation with multiple indicators. However, aside from the stability of TD9, several other indicators are performing quite positively, so this round of TD9 might be continuously lagged.

From a short-term perspective on the 4-hour level, the primary focus is on the MACD indicator showing consolidation at a high level (this position theoretically requires adjustment). Additionally, the price has created a gap with the 5-day moving average, and the price has broken out within the Bollinger Bands. Therefore, I personally anticipate a slight pullback adjustment in the early morning (the strength is estimated not to be too strong), and after this adjustment, Ethereum and Bitcoin will continue to move upwards.

In summary: I personally expect Ethereum to make a slight southward adjustment in sentiment in the early morning, with the strength not being too strong, and the low point expected to be near the 4-hour MA5. After the adjustment in sentiment ends, Ethereum will continue to see an increase in volume upwards, with the next high point still referencing the critical strong resistance area around 4116-3972 on the larger timeframe. For Bitcoin, after the slight adjustment in sentiment ends, the next target will be to break the historical high and aim for above 110,000.