Li Shengting: 5.16 Ethereum Early Morning Market Analysis and Trading Ideas

Ethereum's price dropped to around 2477 during the early morning hours today. From the daily technical indicators, the KDJ indicator is at a high position crossing down, while the MACD indicator's DIF shows signs of a downward turn. The bullish momentum is also continuously shrinking, and the MA5-day moving average shows clear signs of weakening. However, the MA10-day and MA30-day moving averages are still showing signs of strength. Currently, the bearish trend appears to have halted its decline, and the support level below the short-term trend line is still relatively strong. After bottom adjustments, it quickly rebounded to around 2560. I personally believe that the price will likely continue to test the bottom support.

From the 4-hour technical indicators, although the KDJ and MACD indicators show clear signs of a decrease in bullish momentum, the BOLL indicator is currently operating in the middle band area, and the price continues to rise. In the short term, although the MA5-day and MA10-day moving averages show clear signs of shrinking volume, the high point of the MA30-day moving average remains very strong. I personally believe that the intensity of the decline in the early morning did not have a substantial breakthrough of the bottom support, so my suggestion for the early morning is to mainly short on rebounds.

Ethereum: Short near 2560-2590 with a stop loss at 2637, target looking at: 2500-2470.

Bitcoin: Short near 103500-104000 with a stop loss at 105300, target looking at: 102000-100000.

The above is my personal analysis of the early morning market, for reference only.