Analysis and Trading Ideas for Recent Trends in Ethanol Futures

Currently, ethanol futures are still in a range-bound oscillation pattern, with prices repeatedly testing within a specific range, and the tug-of-war between bulls and bears is quite intense. The lower support level of 3700-3800 has formed a temporary support, while the upper range of 4200-4300 constitutes a clear resistance, making it crucial to focus on the breakthrough situation at these two key price levels in the short term.

From the operational strategy perspective, if prices rebound again to the 3700-3800 support range, one could consider placing long positions, while strictly setting the stop loss at the 3650 level. It is important to note that this support level has already undergone three tests, and as the number of tests increases, the strength of the support may gradually weaken, thus increasing the probability of a subsequent breakdown. Therefore, if the price falls below the stop loss level, one must exit decisively to avoid greater losses. If the support range is effectively broken, ETH is likely to test the 3300-3500 range downward, which can serve as an important observation and potential layout reference going forward.

Looking at the upper resistance, the 4200-4300 range has attracted price touches twice before, both of which triggered corrective movements, sufficiently demonstrating the strength of the resistance in this range. If prices can strongly break through this resistance range subsequently, accompanied by a significant increase in trading volume, the upward space for ETH will be opened, potentially advancing further towards the 4500-4600 range, at which point one can seize the opportunity to capitalize on the upward movement. #eth #以太坊 #web3