The price of Ethereum has recently fluctuated between the support level of 2600 and the resistance level of 2617. Technical indicators show that the MACD histogram is gradually shortening, indicating a weakening of bullish momentum; the KDJ indicator has formed a death cross, showing an overbought state; the MA10 and MA30 moving averages are in a downward trend. In terms of market dynamics, trading volume is shrinking, with prices and trading volume declining in sync, leading to reduced market activity.
Recent important developments in the Ethereum space include: the Ethereum Foundation plans to reduce annual operating expenses to 5% of total assets within five years, emphasizing long-term autonomy and ecological sustainability; the Ethereum 2.0 upgrade is ongoing, aiming to improve the network's scalability, security, and efficiency; the 203rd Ethereum ACDE meeting focuses on the Pectra upgrade test network, promoting the mainnet upgrade and ecological collaboration.
For short-term operations, it is advisable to wait and observe. If the price rebounds to the 2617-2620 area, consider taking a light short position, setting a stop loss above 2630, with a target looking at 2600-2580. If the price effectively breaks below the 2600 support level, you can short in line with the trend, setting a stop loss at 2610, with a target of 2550-2530. For medium to long-term positions, you may wait for the price to pull back to the 2480-2500 area for gradual accumulation, setting a stop loss below 2460, with a target of 2800-3000, while continuously monitoring policy and ecological developments.
In terms of profit-taking and stop-loss, if you short at 2617-2620 as suggested, after achieving the target, if the price falls to 2600, you can take profit on 50% of your position, moving the stop loss for the remaining portion to the breakeven price. If entering at the 2480-2500 area, you can take profit in batches: take 30% profit when the price rises to 2800, another 30% at 2900, and track the trend for the remaining holdings. For stop loss settings, short positions should have a stop loss set 1%-2% above the resistance level, such as 2630, while medium-term long positions should have a stop loss set 1% below the key support level, such as 2460.
Please note that the cryptocurrency market is influenced by multiple factors, and price fluctuations can be severe, so position sizes should be strictly controlled. Additionally, technical indicators may fail in extreme market conditions, so it is recommended to combine market sentiment, capital flow, and other factors for comprehensive judgment, while also paying attention to the potential risks of black swan events.
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