The short-term rebound momentum has gradually been released, expected to enter the retracement phase starting today. Focus on the key support level around 68k (near the 21-day moving average)
Whether it can stabilize will determine if the rebound continues. If it falls below, the rebound structure will be damaged, and further declines need to be guarded against.
In the current position, do not chase long positions or blindly bottom-fish, wait for the retracement to provide structure before discussing direction.
Currently still in the rebound recovery phase after a decline, with short-term prices operating between the medium-term moving averages.
Expected Path: 1. Pay attention to the 21-day moving average at the 68500 level for pullback targets. 2. If a pullback stabilizes and forms support, there is a chance to continue testing the 55-day moving average upward. 3. If the 21-day moving average is lost, the trend will weaken, with key support at the 66k level below.
Before the moving averages show a bullish divergence, we still focus on interval thinking + structural confirmation. Market direction is not guessed; it is followed as it unfolds.
The current structure of Ethereum, clearly shows signs of divergence. Price hits a new high, but momentum doesn't keep up, MACD volume fails to synchronize and expand, a typical "can't pull it anymore."
At this position, chasing long positions, the risk-reward ratio is no longer favorable. It's more likely to first pull back for adjustment, whether it is a small level retracement, or evolves into a larger level decline, let the structure dictate.
Currently, the risk is Bitcoin moving sideways at a high level, if Bitcoin struggles to push higher, and weakens to form a resonance, then a pullback will be imminent.
After a significant market drop, it often does not reverse immediately, instead, it tends to oscillate within a large range.
Looking at the recent structure, it is highly probable that the price will continue to move back and forth between the upper and lower bands of the 4H Bollinger Bands.
But it is important to emphasize one point: Oscillation is a process, not a conclusion.
From the perspective of the current large structure, the final direction is likely still downward.
In this wave of silver's performance, the risks were clearly warned at the top last time.
Subsequently, a significant level of retracement was made, approaching a maximum of 50%, and the risks that needed to be avoided have been avoided.
Currently, from a structural perspective, after the retracement is completed, there is a greater tendency for a significant level of rebound.
At this position, I no longer see a bearish trend in the short term; going against the trend to short is already of low cost-performance ratio.
The rebound target is initially set at the 100 level, and there will inevitably be fluctuations in the middle, but the direction must respect the structure.
Market trends are not emotions; one should short when it’s time to short and long when it’s time to long.