$ETH Evening Thoughts:
The second currency is trying to break below the support level of 2550 again; it just came up for a few days and is about to go down. What's going on—does something sharp poke the butt above 2550? Moreover, the exchange rate of the second currency has also shown a decline.
The image can't fit, so I won't provide a picture and will describe it: if the exchange rate of the second currency breaks below 0.02368 on the daily level, it will need to retrace to the lower levels of 0.02240-0.02140. This is not a good phenomenon. Remember, classmates, if the exchange rate of the second currency falls, the second currency can't rise; its ability to rise completely depends on the exchange rate.
🌲
Talking through the chart: the second currency on the hourly level is also forming a wedge structure, and the lower boundary of this wedge structure happens to be the support level of 2550. Once it breaks below the lower boundary of the wedge and fails to rebound, it will continue to decline. If you really want to go long, you can only wait for the second currency to falsely break below the lower boundary of the wedge and recover, or wait for it to break through a key resistance level before going long.
If the second currency breaks through 2572 with volume, you can chase long on the right side; if it breaks below 2545 with volume, you can chase short on the right side. Pay attention to the changes in volume and set stop losses properly.
The second currency needs to stabilize above 2573 to look upwards at 2616-2655; if it can't stand above 2573, it won't be able to look up at all.
On the 4-hour level, if it breaks below 2540, look down at 2488-2435. If it breaks 2500, the second currency will not have the momentum to continue upward unless there is positive news to support it.
🌲
Continuing to look at the chart: the Fibonacci 1:1 retracement target for the second currency on the hourly level is 2463, and it is highly likely to touch the 1:1 retracement target soon. Currently, the second currency is retracing to the 50 level of Fibonacci. Classmates should remember that the 50 level and the 61.8 level of Fibonacci are also support levels. The second currency may pause briefly at these two positions and show a small rebound. I hope classmates do not get deceived into thinking that the support has held and that it is time to go long; it may not be a support level but rather one to break.
If the second currency retraces to the 50 level or the 61.8 level of Fibonacci and shows a rebound but cannot break above 2600, it will still go down. The support at 2600 has turned into resistance, making it not so easy to go up.
Tonight at 8:30, the retail sales month-on-month for May will be announced. Avoid the spotlight and wait to observe until the data is released before looking for opportunities to enter. Meeting adjourned.
