Cryptocurrency Circle Liying: Ethereum continues to decline on December 22, should we blindly short or continue to build long positions? Latest market analysis

Article published on December 22, 2024 ---- 1:20 PM

The current price of Ethereum is 3319. Continuous longs can easily lead to overexcitement and loss of rationality. Liying set up a short position after breaking 4000, originally planning to exit at 4130, but ended up holding until 3400. In this wave, the long positions were liquidated twice as the main force swept them out. Let's be rational; there are no invincible generals. After being swept out twice while trying to go long, we must first consider whether the bulls are still in play and whether the main strategy is to go long or short.

Looking at the market, Liying starts with price trend analysis. The current candlestick pattern shows a clear downtrend, especially after the significant drop on the 20th and 21st. The price is currently oscillating at a low level. In the 4-hour chart, several small bearish candles with long upper shadows indicate heavy selling pressure above. Looking at the technical indicators, the current MACD shows both DIF and DEA are negative and relatively close, with the MACD histogram slightly shortening, indicating a weakening of bearish strength, but no clear reversal signal has formed yet.

The Relative Strength Index (RSI) is currently around 36, close to the oversold zone, which may indicate a need for a technical rebound, but overall it still leans towards weakness. The trend indicators EMA have seen the price drop below EMA7, EMA30, and EMA120, with short-term, medium-term, and long-term moving averages showing a bearish arrangement, indicating a strong downward trend. The distance between EMA7 and EMA30 is gradually widening, further confirming the downtrend. The daily trading volume is gradually decreasing, indicating a cautious market sentiment. The significant fluctuations in 4-hour trading volume, with cycles of increasing and decreasing volume, are typical bearish indicators. Liying suggests waiting for the bearish trend to end and primarily looking to go long at lower levels, or waiting for a pullback to previous highs before considering a short.

Today's latest reference points:

Long entry at 3250, add at 3200, stop at 3150, target at 3400

Short entry at 3400, add at 3450, stop at 3500, target at 3250

The above analysis is based on market data and trend analysis and does not constitute investment advice. For reference only. Over the past ten years, Liying has continuously explored and experienced hundreds of different digital assets. Throughout this process, Liying 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, Liying 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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