$ETH Evening Thoughts: The triangle at the hourly level for the second contract has also been broken, and both the high and low points are being raised. If it can pull back to the upper boundary of the triangle before breaking upwards, the effect will be better.
When trading, if you can understand the structure, you will have profits. If you can see that the high and low points are being raised, you know that at least currently you cannot continue to short. Conversely, if the high and low points are both lowering, you should understand that you cannot go long at this moment. Trading is like playing cards; you cannot always get the same hand. Trading is similar, especially in short-term trading. Today I might be bullish, and tomorrow I might be bearish, because the market changes at any time, and you need to follow the trend.
In the larger cycle, just look in one direction. Now the hourly level for the second contract has reached the resistance level of 4565 indicated by the right yellow arrow. If it can break through, look for around 4648. If the second contract wants to continue to drop, it will also rebound a bit, but it will not fall straight down from the previous high; that would be very painful. If you hurt, I hurt, everyone hurts together.
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For the second contract, break through 4541 with volume to go long on the right; break down 4478 with volume to go short on the right. Pay attention to the changes in volume and keep a good stop loss.
The second contract at the hourly level should hold above 4546 and look upwards at 4592-4640.
At the 4-hour level, if 4490 breaks down, look down at 4447-4389. If it does not break 4447, just keep calm.
Continue to look at the chart: the second contract at the daily level is currently attempting to break out of an expanding megaphone pattern. If at 8 AM tomorrow it can hold above the upper boundary of the expanding megaphone pattern, the danger of a decline at the daily level will be lifted, and the second contract will run along the upper boundary of the megaphone pattern, possibly touching the previous high. If it cannot close above, the decline crisis at the daily level still exists. Meeting adjourned.
