The two consecutive declines have lasted for several days. Where is the next key support?
Recently, many people have been asking: Is Ethereum about to bottom out? Is it time to buy the dip?
After looking at the charts, I just want to say: Don't rush, the risk is not over yet.
Currently, ETH has adjusted from the July high of 3940 to 3615, with five consecutive bearish days on the daily chart. The trend is very clear—bears are in control of the pace.
Let's break down a few key signals:
1️⃣ The Bollinger Bands are opening downwards, and the price is close to the lower band.
This indicates that the market has entered a weak downward range. After breaking below the middle band, the price continues to decline. It is currently running close to the lower band. Although there is short-term demand for a rebound, as long as it doesn't rebound above the Bollinger middle band (around 3720-3740), it is merely a “breather” during the decline.
2️⃣ MACD bearish momentum is still increasing.
Currently, both DIF and DEA are operating below the zero axis with a death cross, and the red bars are getting longer, indicating that the bears have not yet backed off. In this situation, guessing the bottom is going against the trend.
3️⃣ Volume accompanying the decline indicates that funds are indeed retreating.
Recently, several bearish candles have seen volume decline, with price and volume in sync, making rebound pressure greater. To stop the decline, we need to see either a decrease in volume with sideways trading or an increase in volume stabilizing, but neither has occurred yet.
So how will it go next?
The critical support range is between 3540-3570. This area is a previous consolidation platform, and once it breaks below, it is likely to directly test the strong support range of 3400-3350.
On the contrary, to reverse the downward trend in the short term, it must at least regain the 3720-3740 level, which may allow it to retest 3900.
So should we buy the dip or not?
If you are trading short-term, it is advisable to wait for clear signals before taking action. Don’t turn yourself into a knife-catching victim just to “catch the rebound.”
If you are dealing with spot trading, don’t rush to add positions either. The next good position will be when it stabilizes below 3400; by then, market sentiment will have mostly cleared.
The market is not done yet, the bottom has not been reached, so being steady can lead to greater profits.
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