$ETH Evening Thoughts:
Talking through the chart:
The second contract really has nothing to talk about, it has been moving within the box and consolidating. In this kind of sideways fluctuating market, what can you do? It can't even break out of this range, so what operational space do you have? An m-top has appeared inside the box, and the neckline of the m-top is at the lower boundary of the box at 2911. As long as it breaks below 2911, the m-top at the hourly level will confirm a lower low at 2875, which absolutely cannot hold and will definitely go to around 2836.
Only by breaking out of or breaking down from the box will the second contract show direction. If it doesn't break out or break down, it will continue to move within the box! This kind of behavior with such high candlestick overlap truly has no operational space. I hope everyone does not engage in excessive operations in front of this kind of trend; it is meaningless. Be patient and wait for it to show direction before entering.
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For the second contract, if it breaks out with volume above 2942, consider going long on the right side. If it breaks down with volume below 2920, consider going short on the right side. Pay attention to changes in volume and set stop losses appropriately.
At the hourly level, if it stabilizes above 2946, look upwards to 2975-2994.
At the 4-hour level, if it breaks below 2908, look down to 2858-2810.
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Continuing to look at the chart: for the second contract at the 4-hour level, observe the trend indicated by the yellow arrow. The decline and consolidation continue, and now it is consolidating again. Will it continue to decline? The answer is yes, it will continue to decline because the market has inertia. When this inertia will end is unknown, but most retail investors will go with the flow. Unless the second contract can stabilize above 2973 at the 4-hour level, it will not stop declining; otherwise, it cannot escape the decline. Meeting adjourned.
