Recent Trend Analysis of ETH

Trend Judgment

It can be clearly seen from the chart that the price of ETH has shown a significant downward trend recently. Since around January 28, the price has sharply declined from close to 3045, continuing to fall to a closing price of 2199 on February 2, with a huge drop in a short period, and the rebound during this process has been weak. The moving average system is in a bearish arrangement, further confirming the downtrend.

Core Points

Price Trend: The rapid decline in price from the high indicates that the market bears have an absolute dominance.

Technical Indicators: In the MACD indicator, both DIF and DEA are negative, and DIF is below DEA. The MACD histogram is green and continues to expand, indicating strong bearish momentum.

Market Sentiment: Combined with the drop and technical patterns, it is speculated that market investors are experiencing heavy panic, and bullish confidence is severely undermined.

Operational Suggestions

For Bearish Holders: Given the current strong bearish trend, one can continue to hold short positions but should set reasonable take-profit and stop-loss levels. The take-profit can be set based on previous lows or key support levels, and the stop-loss should be placed above recent slight rebound highs to prevent unexpected large rebounds in price.

For Bullish Observers: It is not recommended to easily attempt to catch the bottom in the short term because the downtrend has not changed, and the risk of catching the bottom is extremely high. One should wait for clear stabilization signals in price, such as consecutive small bullish candles and gradually increasing trading volume, before considering entering long positions with a light load.

For Conservative Investors: Maintain observation until the trend is unclear, waiting for the market to establish a clear trend before taking action to avoid losses in a volatile or downward market.