Short signal emerges for $ETH market, 2500 support level is in jeopardy!
Recently, the ETH market has been performing poorly, with selling pressure significantly increasing. The buy-sell ratio has reached 1.81x, indicating that the number of sell orders far exceeds buy orders. Meanwhile, trading volume is shrinking, and there is little momentum for price increases, with technical indicators also showing that ETH may be about to drop.
Technical Analysis
Price Situation: The Bollinger Band position is at 71.44%, nearing the upper band of 2550, indicating that the market is in an overbought state, with significant retracement pressure. Currently, ETH's price is below the MA200 (2607) and the holding cost (2570), suggesting a weak medium-term trend. Many holders of ETH are losing money, and selling pressure is likely to increase. Market Strength: The 24-hour trading volume ratio is only 0.417, much lower than average levels, making it difficult for the shrinking rise to sustain. Open interest continues to decline (down 0.38% in 24 hours), and capital flow is negative (net outflow of 61.95k in contracts). The smart money long-short ratio has dropped to 3.37, with bears dominating and market sentiment being neutrally bearish. Key Price Levels: Support is at 2500, resistance is at 2550. Sell orders are dense in the range of 2534 - 2545 (valued at 774k USDT), making it easy for short-term prices to break below this area.
Market Cycle
Currently, ETH is in the mid-phase of a bear market, with prices below key moving averages and continued capital outflow, indicating an overall weak trend.
Trading Strategy
Direction: Short Entry Point: 2530 (this position faces selling pressure) Stop Loss Point: 2540 (this is the upper resistance) Target Point: 2500 (support level) Risk-Reward Ratio: 3.0 Risk Warning: If the price breaks 2540 or there is any macro positive news, this strategy may become ineffective. Position size should be controlled within 2%, avoiding operations during low liquidity periods in the Asian session.
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