The circle is wrong, and the effort is in vain.
Ethereum has had two false breakthroughs in the oscillation zone. The question now is whether it will rise or fall. Many friends have been paying attention to this issue in recent days.
Several rises have not succeeded, which has increased the confidence in short selling. Many friends believe that this wave of Ethereum's rise will not break through 2800. From the first time until now, this oscillation zone has maintained for a month. Some people think that since there has been no breakthrough in a month, a big drop will follow.
Yesterday, while chatting with a friend, he said that a huge crash is unimaginable. When I asked him why he thinks so, the answer was: Bitcoin has been stuck at 110,000, and Ethereum has been stuck at 2800. If it were going to rise, it would have risen by now.
There are not just one but many people with this view.
Yesterday I analyzed Bitcoin's trend, and today I'm going to analyze Ethereum to see whether it will rise or fall next.
This is the daily chart of Ethereum. The daily chart belongs to the medium term. Let's first take a look at the strength of bulls and bears in the entire oscillation zone.
1. There were two breakthroughs in the oscillation zone. Although they were false breakthroughs, the highs are rising, which is a sign of bullish strength.
2. A few days ago, there was increased volume when it broke the previous high.
3. Yesterday's daily candle closed bearish with increased volume, but it had a long lower shadow, indicating strong support below.
4. Yesterday's pullback did not break the previous low, and the low points in the entire oscillation zone are rising.
5. The bearish volume has been increasing over the past three days of pullbacks.
6. The price has reached the lower Bollinger Band but has not broken below it.
7. Yesterday's daily candle closed with a stop-loss signal, a 'hammer' candle.
Based on the clues from the above seven points, it can be judged that the bulls are stronger than the bears, and this wave of daily pullbacks has ended.
This oscillation zone has lasted for a month without breaking down, which indicates that the strength of the bears is not strong. On the contrary, although it has broken through twice without success, it has surpassed the previous high. Analyzing these two points combined with the above clues from the oscillation zone, it can be concluded that this oscillation zone is accumulating strength for a breakthrough, rather than being at a peak.
The market after the oscillation is actually easy to analyze. If the bears are strong in the entire oscillation zone, it will decline subsequently. If the bulls are strong, it will rise. Currently, the evidence we can see in this oscillation zone is that the bulls are strong, and the upcoming trend will be upward.
Trading is actually quite simple. Through market analysis, go long when the strength is strong, and go short when the bears are strong. There is no need to be affected by various news.
The above analysis only represents personal views and does not constitute any investment advice.
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