Good afternoon ☕️ As usual, let's share the buy and sell points before analysis:
🌳 Long Entry Point One: $2050
Reason: Approaching the low point near 03:00 on March 4, whole numbers usually provide good support.
🌳 Long Entry Point Two: $2025
Reason: Close to the lowest price of $2025.65 at 01:00 on March 4, forming a potential rebound area.
⚠️ Long Stop-Loss Point: $2010
Reason: Considering the significant fluctuations in the past, if the price breaks below the $2000 mark, it may decline further.
🚂 Sell (Short) Point One: $2125
Reason: Near the closing price at 00:00 on March 4, combined with the support level at that time and the position of EMA7, there is a significant selling pressure.
🚂 Sell (Short) Point Two: $2165
Reason: Approaching the high point at 23:00 on March 3, the clearly defined pressure area above the market is likely to trigger a correction.
🚂 Short Stop-Loss Point: $2180
Reason: If the price breaks through Sell (Short) Point Two, the short-term bearish trend may weaken, and risk must be controlled in a timely manner.
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"Ten minutes a day, trading is great" - ☕️ I am Openg, and today we will discuss the rapid drop in ETH prices from a high position. The continuous series of bearish candles indicates strong bearish sentiment, but the partial rebounds also expose the tug-of-war between bulls and bears. Especially between March 1 and March 4, there were multiple occurrences of long-wicked candlesticks, indicating intense market competition between bulls and bears, with clear emotional divergences. This situation often suggests that short-term traders are looking for a breakthrough, which may also trigger significant volatility.
Next, let's look at signals from the three commonly used indicators: MACD, RSI, and EMA.
1. MACD Signal
The current MACD value is negative, and both DIF and DEA are operating below the 0 axis, indicating that we are currently in a bearish trend. Although the downward momentum has somewhat weakened recently (the green bars have shortened), there clearly has not been a signal of bulls stepping in, and overall, it still leans bearish.
2. RSI Observation
The RSI indicator is hovering around 30, approaching the oversold area, which theoretically could trigger a technical rebound. However, there have not yet been significant reversal signals, and the market remains at low levels with cautious sentiment.
3. EMA Moving Average Trend
The current price is below the EMA7, EMA30, and EMA120 moving averages, and the moving averages show a bearish arrangement, indicating that the market's downward pressure remains significant in the medium to long term. The rebound in the short term is more likely to be just a dip correction.
In the context of a clearly defined bearish trend, although the market is at the edge of being oversold, whether this will trigger a technical rebound is widely contested. Some believe that the oversold area is often a good time to buy on dips and a rebound may occur in the future; while others remind that the current MACD and EMA both show a bearish arrangement. Although a rebound may occur in the short term, the overall trend is still downward, and recklessly chasing long positions carries significant risk.
Overall, the current market is still dominated by bears. Although the RSI is on the verge of being oversold which may bring about a technical rebound, the bearish signals from MACD and EMA are evident. Coupled with the increased cautious sentiment in trading volume, the market trend remains uncertain in the short term. We must exercise caution in our operations, layout reasonably, and set strict stop-losses to find stable entry and exit opportunities in this volatile market.
(This strategy only represents personal opinions for reference; the market has risks, and betting everything can lead to liquidation!) Finally, don't forget to follow and like! Wishing for abundant wealth in 2025 for you and me!
