$ETH Evening Thoughts:
Talk about the picture:
The recent performance of the second contract has been good, not following the first contract to test the previous low, which is commendable. I hope the second contract doesn't come in for a corrective drop.
The second contract has not broken the triangle, but it cannot break through the 3183 level above, and it cannot rise. Additionally, an M-top has formed inside the triangle; the neckline of this M-top is at 3118, which is also the lower boundary of the triangle. If it breaks below the triangle's lower boundary, the M-top would be confirmed, and the second contract would likely expand its decline. If it can break through the neckline of 3183, a W-bottom would be established, allowing for a view towards higher positions. Now, let's see which way the second contract will break!
Whichever way it breaks, trade in that direction.
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The second contract should break through 3140 with volume for a long position, and if it breaks down through 3118 with volume, look for a short position. Pay attention to changes in volume and set stop losses accordingly.
The second contract needs to hold above 3183 on the hourly chart to look towards 3220-3270. If it can't break above 3183, the upward trend cannot continue.
On the 4-hour chart, if it breaks below 3116, look down towards 3064-3000; even breaking the previous low of 3064 at 3116 may not hold.
Continuing to look at the chart: on the 4-hour chart for the second contract, let's hope it doesn't form a Evening Star pattern. Once the 4-hour level closes as an Evening Star pattern, the decline on the 4-hour chart for the second contract would just be beginning. Meeting adjourned.
