Cryptocurrency Circle Li Ying: 11.5 Extreme Oversold Approaching! Is Ethereum 2350 Your Entry Signal? Latest Analysis

Article published on 2024.11.5—07:00

Ethereum plunged in the early session, dropping below 2350, but before the article was published, it returned above 2400, currently priced at 2402. Similarly, with prices above 2400, defending 2350 was not an option. Li Ying still chose to have students exit at 2410, not holding on, as the market's bearish momentum was too obvious, and the bottoming process has not yet ended. Some risks can be avoided, and Li Ying chose to avoid them, prioritizing safety. Initially, it was thought that Ethereum would not rise or fall significantly, but such a clear bearish trend was unexpected.

Li Ying first analyzes the price trend, noting that the candlestick pattern clearly shows a downward oscillation trend. Everyone can refer to the broader market as Li Ying mentioned. The daily candlestick has continuously closed in the red, and within the 4-hour cycle, several long upper shadows have appeared, indicating heavy selling pressure from above and clear distribution by the main force. The technical indicator MACD is below the zero line on the 4-hour chart, with both DIF and DEA in negative territory, and the MACD histogram has turned from positive to negative, which is what Li Ying often refers to as bearish momentum.

The Relative Strength Index (RSI) is approaching the 30 oversold zone on the 4-hour cycle but has not entered the extreme area. There is a demand for a rebound in the short term, but the rebound space is limited, making it unnecessary to take this risk. The trend indicators EMA for both 30 and 120 are diverging downwards, and the current price is below all moving averages, indicating an overall bearish trend. The trading volume has increased, especially with a significant expansion in 4-hour trading volume at high points, indicating strong selling pressure at high levels. Li Ying suggests waiting for another bottom test to confirm support before starting to go long. If there is no bottom test, wait to attempt short positions when encountering resistance levels.

Short-term strategy reference:

Long entry at 2350, add position at 2300, stop loss at 2270, target 2500.

Short entry at 2500, add position at 2550, stop loss at 2580, target 2400.

Reason: Confirming support at previous lows allows for entry, with defense set at integer support levels. The short entry point also belongs to an integer pressure level. Li Ying advocates for stability, taking a cautious approach. The content of this article is time-sensitive and for reference only; risks are borne by the reader.

The above is a brief analysis by Li Ying regarding the current market situation for investors' reference. Over the past ten years, Li Ying has continuously explored and experienced hundreds of different digital assets. Throughout this process, Li Ying has witnessed the brilliance of bull markets and the gloom of bear markets, accumulating countless valuable experiences and profound lessons along the way. As a female trader striving in this challenging field, Li Ying feels a responsibility to share her insights, hoping to assist others with dreams in finding their place in this unpredictable market and embarking on their own successful journey.

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