Coin Circle Li Ying: Will Ethereum End the Bullish Trend and Start a New Downtrend on December 20? Latest Market Analysis

Article Published on 2024.12.20----02:00

Ethereum's current price is 3480. Ethereum bulls are facing liquidation as the main players begin to take profits. The short position set at 4050 has already taken profits when it retraced to around 3700. Now, at two in the morning, liquidation has directly broken the support at the 3400 level, turning the bullish trend into a bearish one. After the short sell-off, how will the market move? Is it the end of the bullish trend or the beginning of another bullish phase?

Looking at the current market, we start with price trend analysis. The candlestick patterns on the order book clearly show a downtrend, especially the large bearish candles on the 19th and 18th, indicating strong selling pressure. In the 4-hour timeframe, the price has gradually fallen from a high of 3908 to around 3520, forming a series of lower lows and lower highs. The technical indicator MACD in the 4-hour timeframe shows that the MACD histogram remains negative and is expanding, with both DIF and DEA diverging downwards, indicating strong bearish momentum.

The current Relative Strength Index (RSI) value is 27.54, which is in the oversold range, suggesting a potential short-term rebound. However, the overall trend remains weak. The trend indicators EMA7, EMA30, and EMA120 are all in a bearish arrangement, and the price is operating below all moving averages, showing a clear downward trend. The increase in trading volume intensifies market selling pressure. Recent volatility has been significant, with increased volume accompanying price declines, indicating a bearish market sentiment. In the short term, the strategy can be to short on highs and long on lows, with a temporary focus on bearish positions.

Today's Latest Reference Points

Long entry at 3400, add at 3350, stop at 3300, target 3650

Short entry at 3650, add at 3700, stop at 3750, target 3450

The above analysis by Li Ying is based on market data and order book trend analysis and does not constitute investment advice. For reference only. 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 help others with dreams find their place in this unpredictable market and embark on their own successful journey.

The content of this article is time-sensitive and for reference only; risks are borne by the reader.

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