Ethereum breaks key level, risk alert sounded! How should investors respond?
In the ever-changing landscape of the cryptocurrency market, Ethereum's recent performance has undoubtedly become the focus of many investors. Currently, the situation for Ethereum is becoming increasingly severe, as its price has broken through the critically important upward trend line and the head-and-shoulders neckline, a key change that sends a strong warning signal to the market.
Based on past market data backtesting, after similar situations occur, the probability of Ethereum's price experiencing a slight rebound followed by further adjustment is as high as 75%. However, market trends are not completely irreversible. If the market can welcome a significant positive news event at this time, pushing Ethereum to regain a foothold above the neckline, the previous downward trend may disappear, and the market could achieve a splendid turnaround, embarking on a path of reversal and upward movement.
Unfortunately, up to now, such positive signals have yet to be captured, and the current market environment remains a cloud of bearishness for Ethereum. A careful review of Ethereum's previous upward journey shows that its price surged rapidly in a short period, with an astonishing increase. But as the saying goes, 'it's lonely at the top'; excessive rises have accumulated a lot of adjustment pressure, and today's decline is, to some extent, an inevitable process of market self-repair and solidifying the price base.
If strictly following the current theoretical trend, Ethereum is expected to first rebound to around 2520, before starting a new round of downward movement, with target price levels possibly pointing towards 2360 or 2290. After experiencing this fluctuation in price, it will then seek direction anew and gather strength to set off again.
At this critical juncture, investors must be fully alert, closely monitor market dynamics, carefully choose investment strategies, and must not lose direction in the market's tumultuous waves.