12.16ETH Early Morning Trading Prediction
ETH has seen a technical oversold rebound after a sharp decline, quickly dropping over 190 points from the high of 3177 to a low of 2985, with a weak rebound indicating that short-term bears dominate the market. Bulls are only making small bottom fishing attempts around the 3000 level, showing insufficient confidence. During the decline phase, trading volume increased significantly, while during the rebound phase, volume clearly shrank, reflecting that funds have not entered the market on a large scale to absorb selling pressure. The market is overall in a cautious wait-and-see state. 2985-3040 is the core trading range for long and short positions in the early morning; the breakout direction from this range will determine the short-term trend.
ETH will oscillate repeatedly in the 3000-3020 range, with 3020 as the short-term rebound resistance and 2985 as the key support level for this round of decline. After a sharp drop, the market needs time to digest selling pressure, and trading volume for cryptocurrencies typically decreases during the early morning hours, making it difficult for funds to drive prices to form a significant one-sided trend, leading to a temporary stalemate between long and short positions.
Trading Advice:
If the price stabilizes at the support zone of 2985-3000 (for example, if a bullish candlestick stabilization pattern appears), open a long position with a light position, set the stop loss at 2970, and target 3065-3075.
If it effectively breaks below 2985 (closing price below this level with volume), ETH will further explore the 2950-2960 area, with extreme cases possibly reaching the 2900 level, driven by continued bearish selling pressure and bottom-fishing funds exiting.
