Ethereum Review from Yesterday

Yesterday, Ethereum fluctuated around the range of 4210--4320 throughout the day. Following a dovish speech from the Federal Reserve Chairman in the evening, Ethereum surged from 4287 to a peak of 4888 in the early hours of today! In total, within 8 hours, it saw an increase of 600 points. The news of interest rate cuts ignited a long-suppressed atmosphere, and the bears were completely overturned! As the market enters the weekend, capital inflow has decreased, and a correction is expected, but the volatility will not be too large.

Technical Analysis

From the 4-hour perspective, the Bollinger Bands are currently opening upwards, with all three lines trending upwards, indicating a rising market. On the 1-hour line, the MA moving averages show a unilateral upward trend, but the MA5 has already turned down and is about to cross below the MA10, forming a death cross. If it can hold above the MA10 at a corresponding price of 4810, it will continue to rise. If it breaks down, the 4-hour MA5 will provide support at a corresponding price of 4671. The MACD indicator has formed a golden cross above the 0 axis, indicating an upward trend. However, the volume of the rising energy bars is decreasing, suggesting that the market will experience fluctuations. The RSI indicator is in the overbought area, and the buying line has turned down; if it crosses below the selling line, it will form a death cross leading to a market decline.

In summary, the current market is in a high-level sideways consolidation phase after hitting historical highs.

Upper resistance: 4831, 4888, 4950, 5000

Lower support: 4800, 4750, 4660, 4610

High Short Strategy: If it fails to break the previous high again, a short position can be established in the range of 4850-4830, with a top-up at 4950 and a stop-loss at 5000.

First Take Profit: 4750

Second Take Profit: 4660

Low Long Strategy: If the correction does not break below 4750, a long position can be established in this range, with a top-up at 4610 and a stop-loss if it falls below 4570.

First Take Profit: 4850

Second Take Profit: 4950

Currently, the market is in a state ignited by extremely favorable news sentiment, and as long as the market's greed sentiment does not diminish, one should not go against the trend.