【Chande Theory Analysis | ETH's Recovery Observation After a Decline Divergence】

ETH's recent decline has actually formed a pen-level divergence structurally. The strength of this decline is gradually weakening, and the price shows a significant reduction in the volume-price coordination during the downward process, indicating signs of stabilization after the release of momentum. From the perspective of Chande Theory, this means that the downward pen has entered its final stages.

In terms of position, there was a significant divergence signal generated during the period from 12 to 14 on the left side. The subsequent trends have basically completed repairs in both spatial and temporal dimensions. The current decline has not reached a larger new low but is oscillating at a low level, further validating the effectiveness of the divergence.

Next, it is crucial to see if the rebound in the next two days can be sustained and attack the key range. If the price can smoothly rebound to 4550, or even further challenge 4600, it will likely confirm that the decline has come to a close, and the market may enter a new phase of oscillation or even return to an upward channel. Conversely, if the rebound faces significant resistance and cannot break through 4550 for a long time, the trend may still fluctuate and enter a longer period of consolidation.

A core view of Chande Theory is: divergence means that the trend may end or reverse. The current ETH has already exhibited a downward divergence and completed its repair action, so the focus of subsequent observation is no longer on monitoring the downward target but on whether the rebound has strength and whether it can form a new upward center.

In summary:

Current status: Downward pen divergence has appeared, position repairs are in place

Key points: 4550 → 4600, if broken, it means the decline has ended

Subsequent expectations: If broken, it enters oscillation or a new round of upward momentum; if blocked, it may continue to oscillate and consolidate

Operational thoughts: Pay attention to the confirmation of the rebound in the short term, avoid blindly bearish positions, and patiently wait for clear trend signals

The core of this market movement lies in verifying the effectiveness of the divergence. If the price can firmly hold above 4550–4600, then ETH may re-enter a relatively optimistic phase.