8.20 Tian Ge #ETH 1-Hour Trend Analysis: Key Node Decisions, Long and Short Outcomes Awaiting Division

As an experienced trader in the cryptocurrency market for ten years, today I will discuss this 1-hour chart with everyone.

Recent Trend Interpretation

From the chart, we can see that the ETH price is in a fluctuating range defined by a descending wedge. The upper boundary forms resistance while the lower boundary provides support. The EMA moving averages (20, 50, 100, 200) are intertwined, indicating that both the long and short sides are evenly matched in the short term, making it difficult to form a clear trend.

At the same time, trading volume is showing a gradually shrinking trend, indicating that market participation enthusiasm is decreasing. Both the long and short sides are accumulating strength, waiting for an explosion point. The MACD indicator frequently crosses near the zero axis, and the energy of the red and green bars is also continuously weakening, further verifying the current fluctuating nature of the market.

Subsequent Market Prediction

There are likely two scenarios for the subsequent trend:

- **Upward Breakout**: If the price can break out of the upper boundary of the descending wedge with increased volume and stabilize above the EMA50 moving average, this will signal that the bullish strength is prevailing, and the price may further rebound, targeting the previous high point.

- **Downward Breakout**: If the price breaks below the lower boundary support with increased trading volume, then the bearish strength will dominate the market, and the price may initiate a new round of decline, with support levels to watch being the previous low.

Trading Suggestions

- **Holders**: If holding long positions, you can set the stop-loss below the lower boundary of the descending wedge. Once the price breaks upward, you can consider adding to your position; if holding short positions, place the stop-loss above the upper boundary, and if there’s a downward breakout, consider adding to your position.

- **Observers**: Before the price breaks clearly, it is recommended to remain on the sidelines. Wait for an effective breakout (accompanied by significantly increased trading volume post-breakout, and stabilizing above key moving averages) before following the trend, either going long or short.

In the cryptocurrency market, grasping key nodes is crucial. Follow me for more accurate market analysis and trading suggestions, helping you navigate the crypto sea with fewer detours! (Risk Warning: The cryptocurrency market is highly volatile; investment decisions should be made cautiously, and profits and losses are self-responsible) #加密市场回调