$ETH Technical Observations and Strategic Outlook
Currently closely monitoring $ETH market dynamics. The following are key assessments:
1. Risk Warning:
• If the price effectively falls below the current key support area, there is a possibility of a rapid drop to 2100.
• This process may manifest as a sharp downward daily candlestick entity breakthrough.
2. Main Logic Deduction:
• The market may experience a deep washout/leveraged long squeeze through a sharp drop, aimed at clearing out weak positions.
• The expected decline after a breakdown is characterized by high efficiency and short duration, which is a common shakeout tactic.
3. Subsequent Momentum Prediction:
• If the sharp drop is accompanied by a significant increase in trading volume, it may indicate that a stage bottom is approaching.
• There is a higher probability of triggering a rapid technical rebound that attempts to recover some lost ground and return to key position contention.
4. Response Strategy:
• Cautious Observation: Do not blindly take positions before confirming support.
• Focus on Key Levels: Once a breakdown signal is established, it indicates a potential downward channel opening; if it stabilizes effectively with volume support, it will constitute a rebound observation point.
• Maintain Liquidity: Strictly control positions, keep ammunition, and capture potential volatility opportunities.
Market volatility is indeed a norm. It is advisable to analyze the structure with a calm mind and operate under discipline. I have developed a response plan and am waiting for clear technical signals. I suggest investors also strengthen their risk awareness and respond rationally.
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