#ETH Reappearance of Positions, Who Will Ultimately Prevail?
Position Deployment - Beware of Overexuberance in Resistance Areas
ETH/USDT is currently located in a critical resistance zone (approximately $4,080 to $4,330), which has historically been the upper limit of trading ranges. This price level has often acted as strong resistance in the past, and the current price shows signs of overexuberance after a sharp rise.
Technical Analysis Tools
Relative Strength Index (RSI, 14 period): Currently in overbought territory, with a reading of 77.44, and its moving average at 81.65. Both of these levels have historically triggered pullbacks.
Volume Situation: Volume has been high during the rise, but as momentum weakens at the resistance zone, volume may gradually decrease.
Trading Policy: Look for short opportunities at the top of the range
Entry Price Level: Close to the current price level, within the range of $3960 to $4050.
Logical Basis: Establish short positions at the top of the range, combined with the overbought RSI indicator, expecting the market to experience a pullback or rejection at the range.
Profit Target Range
We are monitoring several support levels for potential profit-taking exits:
TP1: $3470
TP2: $3275
TP3: $3060
Special Reminder: Although multiple potential targets have been identified, we may close short positions early, depending on the price action during the pullback. We will closely monitor market structure, volume, and short-term time frame signals.
Risk Control Measures
Stop-loss Setting: Above the previous high point (approximately $4,330), to guard against the ongoing downside risk from a breakout.
Continuous monitoring is crucial as the macro environment and ETH market sentiment can change rapidly.
Summary:
We recommend short-term operations at a clear range top, validated by the overbought RSI and historical rejection areas. Although multiple profit targets have been set, proactive management strategies may be employed to partially or fully close positions before reaching the final target.
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