Ethereum Afternoon Market Analysis and Short-Term Strategy
From the current chart, Ethereum is in a clear narrow oscillation pattern, hovering around a price of 2980. At 1 PM, this K-line closed at 2980.39, with a decline of 0.07% and an amplitude of only 0.33%, indicating a temporary stalemate between buyers and sellers. However, beneath the stalemate, technical indicators have issued key signals.
Resistance and Support: The Bollinger Bands indicator clearly outlines the current framework. The upper band at 3075.09 and the lower band at 2959.49 form a wide channel, while the middle band at 3017.29 serves as the primary resistance. The current price of 2980.39 is situated between the middle and lower bands, indicating a weak oscillation range.
Volume Shrinkage: The current trading volume is only 41,056.7, far below the 5-day and 10-day average volumes, showing a lack of market activity and directional momentum. This type of volume contraction typically indicates an imminent change in trend.
There is local small platform resistance near 2990, while the lower support at 2970 has been tested multiple times recently.
In summary, the price is operating below the key moving averages, and the rebound is on low volume, indicating a bearish short-term structure. Therefore, the strategy suggests adopting a short selling approach on rebounds rather than trying to catch a bottom for long positions.
Short Selling Entry Range: 2985 - 2995, this range is the previous small platform resistance level and is also close to the opening price of the 1 PM K-line. If the price rebounds from the current low to this range, it will test the effective resistance below the Bollinger Bands' middle band again, representing a relatively favorable short position.
Set a stop loss at 3018, positioned slightly above the Bollinger Bands' middle band at 3017.29. If the price strongly breaks through the middle band, the short-term bearish pattern will be broken, and shorts must exit.
Downward Targets:
First Target: 2955. Looking towards the Bollinger Bands' lower band near 2959.49.
Second Target: 2940. Extension target after breaking below the Bollinger Bands' lower band.
If the price drops without rebounding and directly breaks below the 2970 support with increased volume, bearish momentum will strengthen, and light short positions may be considered, but the stop loss must be strictly set above 2980. Conversely, if the price unexpectedly breaks through strongly and stabilizes above 3018, the short selling strategy should be abandoned, and a wait-and-see approach should be taken. The current market volatility is narrowing, so it is essential to operate with light positions and strict stop losses.
