$ETH Evening Thoughts:
Talking through the chart: The pattern drawn in the 2-bit hourly chart is a bullish flag. Everyone should remember that an opening downwards indicates a bullish trend, while an opening upwards indicates a bearish trend—let's not mix them up.
Furthermore, the 2-bit has already broken through the neckline of the consolidation area at 3099, creating a higher high. As long as the pullback does not break below the 3099 neckline, it will not return to test the lower boundary of the flag. The strong resistance above the 2-bit is at the upper boundary of the flag and at 3179, which is also a previous high point. Now, the upper boundary of the flag and the previous high have formed a double resistance level. If 3179 can be broken, there is potential to continue upwards towards the two positions indicated by the white arrows; whether we can see higher levels depends on breaking through 3179.
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For the 2-bit, break through 3127 with volume on the right side to go long, and break below 3096 with volume on the right side to go short. Pay attention to changes in volume and set your stop-loss appropriately.
The 2-bit hourly level is stable at 3146, looking up towards 3180-3229.
On the 4-hour level, breaking below 3093 looks down towards 3040-3000.
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Continuing with the chart: The 2-bit 4-hour level did not break below the support at 3051 yesterday, which is good. If it breaks below the 3051 support, the bullish trend outlined in the yellow box on the 4-hour level will be completely destroyed.
Currently, the 2-bit 4-hour level has shown a potential head and shoulders pattern. Since it has not formed yet, it is still a potential head and shoulders. If this 4-hour head and shoulders pattern is established, based on the position of the left shoulder, you can at least expect the 2-bit to be around 3250. Of course, the premise is that it cannot break below the 3051 on the 4-hour level; if it does, there will be no opportunity. If the 2-bit can reach around 3250, students looking to short may consider lightly entering a short position at this left-side level to catch a pullback; this is still feasible. Meeting adjourned.
