ETH Market Analysis：
Recently formed a double top structure, this pattern is like an “M top”, after forming it broke below the neckline at 4580, short-term pullback pressure is directly at its maximum!
Now the key support level is 4538, which has already been tested twice. If it breaks again, the speed of the decline will definitely accelerate, just like going down a slide.
On August 22, there was finally a significant breakout with a long bullish candle, but for three consecutive days it closed with long upper shadows (4956/4887), indicating that there is heavy selling pressure above 4800, and the bulls are struggling to push higher.
The price is now testing the EMA7 (4554) support, if it can't hold, the next step will be to test the 4400 round number, and then there will be another wave of fluctuations.
The 4-hour RSI14 (50.83) has broken below the upward trend line, the daily RSI (57) has pulled back from the overbought zone, and there have been three instances of bearish divergence on the 1-hour (62→59→55). Simply put, it can't rise anymore, selling pressure is accumulating, and the risk of decline is increasing.
In the short term, don’t blindly try to catch a falling knife, hold back! Wait for the adjustment to settle and for the signals to turn positive before entering the market. Isn’t it better to steadily enjoy the profits?
