10.13 Current Market Dynamics and Trading Strategies for Ethereum

Market Status:

The market is quite tangled right now. After breaking through 4000, the 1-hour chart had a surge, but it was clearly knocked down around 4200. The daily chart has formed a long upper shadow, indicating significant selling pressure at this level. The 4-hour chart has formed an ascending wedge, which is a signal for a potential trend change.
Key positions are closely monitored.
Support below: The range of 4080-4030 is very critical; if it breaks, it may test 4000.
Resistance above: the 4200-4250 range, especially the key level of 4200.
Bull-bear dividing line: 4000 USD, if this position is broken, it will weaken in the short term.
How to interpret technical indicators
On the MACD side, the 1-hour has already formed a death cross, although the daily chart is still struggling below the zero line. The RSI has oscillated in the overbought zone three times, clearly lacking the strength to push further.
In terms of moving averages, the short-term moving averages are still supporting, but the 120-day line is dropping by 5-8 points every day, like a ceiling pressing down. The price is currently a bit far from the 30-day line, indicating a need for a correction.
Volume Analysis:

Since the massive bullish candlestick two days ago, the trading volume has been decreasing, now down by 30% from the peak, and the upward momentum is obviously insufficient. However, the volume-price structure at the daily level is still relatively healthy, indicating a normal correction.
Key area for long-short contest:
Bullish defense: 4080-4030
This is the resistance line for bulls, with the previous low at 4078 and the breakout point at 4032, plus the 30-day moving average is still trending upwards, so it should hold up for a while.
Shorting pressure: 4200-4250
The high point of the upper shadow at 4196, combined with the Fibonacci extension at 4247 and the downward-moving 120-day line, indeed presents significant pressure.
Specific operational suggestions
Long position strategy:
Ideal entry positions: buy in batches in the 4080-4030 range.
Set the stop loss at 3980, give some room for fluctuation.
The target is first to look at 4180, and then at 4250.
Position control: Initial position 30%, add 20% on pullback
Short selling strategy:
Ideal short position: 4190-4210 range
Stop loss 4260
The target is first 4100, then 4050.
Do not hold positions for more than 24 hours, engage in short-term trading.
Risk Warning
Recently, there is a lot of data, and the American data at 8:30 PM should be monitored. If BTC is strong, it may draw blood. It is recommended to control your positions, set stop-losses, and avoid holding onto positions. #行情震荡下的投资策略