Crypto Circle Scholar: 5.20 Ethereum washout leaves hearts broken! Frequent false short squeezes and harvesting are all done by veterans in the crypto circle, latest market analysis for reference
Current price of Ethereum is 2530, it is now 1:30 AM Beijing time. Everyone saw yesterday's Ethereum title, right? The main force is clearly enticing longs while secretly planning otherwise. That's right, I also chose to go long at 2450, ultimately stopping out at 2400. In trading, if you're wrong, you stop out; it's a principle, no holding onto losing positions. Although I managed to salvage it by going short, a mistake is still a mistake. If you're right, you naturally hold on. There are some positions where it's better to enter even if it might be wrong, especially at key trend support points. This time, I was washed out and can only wait for the next opportunity to get back in.
Looking at the order book, the daily K-line reached a high of 2550 and a low of 2345, dipping below the EMA15 trend support at 2370. A wave of liquidation led many crypto friends to believe it would test the EMA120 trend support at 2250. However, a false short squeeze brought it back up to a high position. The bullish trend was restored, and the EMA continues to alternate and expand upwards. MACD top divergence is decreasing in volume, and DIF and DEA are contracting downwards and facing resistance. The main force has the momentum to stretch and sell off. Therefore, after the next assault on the previous high, one might consider testing short positions. The upper Bollinger Band has stretched and broken 2900, while the lower band support has reached 2230, with the high-level consolidation space increasing in line with Bitcoin.
The four-hour K-line has reached the ascending triangle trend pressure point at 2550. The EMA trend indicator is contracting, and in the short term, the 2550 pressure is effective. However, the K-line shows no divergence, with market action consolidating around the high. The main force is likely to move sideways along the trend line. MACD's volume is shrinking and accumulating, with DIF and DEA contracting, forming a golden cross trend. The upper Bollinger Band pressure point is at 2600, with short-term pressure decreasing and long-term pressure increasing. Mid-band support is at 2485. Overall, the bullish trend looks stronger. Crypto friends who haven't entered yet can wait for a pullback to key support before getting in; for now, do not chase the highs at this position.
Short-term reference:
For longs, testing entry points from 2380 to 2350, with a stop at 2320 and a stop loss of 30 points. Target looking at 2450 to 2500, and if broken, looking at 2550 to 2600.
For shorts, testing entry points from 2700 to 2730, with a stop at 2760 and a stop loss of 30 points. Target looking at 2650 to 2600, and if broken, looking at 2550 to 2500.
Specific operations are based on real-time data from the order book, suggestions are for reference only, risk is self-borne $ETH