$ETH Evening Thoughts:
On the hourly chart, the second contract has again formed a bullish flag pattern. An upward opening indicates a bearish bullish flag. If it cannot break through the upper boundary of the bullish flag pattern, it cannot sustain an upward trend. If the price breaks below the position indicated by the yellow arrow on the right side of the chart, it will need to test the lower boundary of the bullish flag pattern,
which is a very risky move.
Why does breaking below the position indicated by the yellow arrow on the right mean the second contract has to test the lower boundary of the bullish flag pattern? Because the position indicated by the yellow arrow is the dividing line between bullish and bearish for the second contract, with strong bullishness maintained above 2561,
the bears have the advantage below 2561.
If the second contract breaks below the lower boundary of the bullish flag pattern and subsequently breaks below the neckline at 2523, then a waterfall for the second contract will come; don’t be fooled by its current strength, the drop can happen in an instant.
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For the second contract, a volume breakout above 2567 on the right suggests going long to catch the rebound, while a volume drop below 2561 suggests going short. Pay attention to changes in volume and set stop losses appropriately.
If the second contract breaks and stabilizes above 2584 on the hourly chart, it will look upwards to 2606-2641; breaking above 2606 means the second contract takes off.
On the 4-hour chart, breaking below 2548 looks downward to 2523-2500-2465, if 2523 breaks, the second contract is finished.
Continuing with the chart: the Fibonacci 1:1 retracement target on the hourly chart for the second contract is 2442, and a deep retracement to 1.618 is at 2339.
Don't think it won't reach there,
it's only about whether the second contract wants to or not; there's no discussion about whether it can or not. Be patient and wait for the U.S. stock market to open for direction, meeting adjourned.