Sharp Decline

ETH has experienced a significant pullback over the past two days, showing "price decline and decreasing volume," with market liquidity weakening, and sentiment extremely pessimistic. There is short-term oversold rebound potential. Daily technical indicators show oversold conditions, suggesting a rebound opportunity, but the medium- to short-term trend remains unclear, and trading volume is relatively low, indicating a lack of confidence.
From a higher timeframe perspective, the strong support level is at 2,241.91 USDT. Short-term trading presents opportunities for both bulls and bears; however, overall bearish momentum is strong. Funds are advised to control their positions and avoid heavy chasing of gains or panic selling.
News: The fund will adopt a "moderate tightening" approach. Bitmine has large unrealized losses. The macro environment is slightly more bearish, but the basic technology and ecosystem remain stable.
Investment Advice
- Aggressive players: Exercise caution with light positions to catch rebounds, set stop-losses (recommended below 2,200 USDT), and monitor support levels below.
- Conservative investors: Currently advisable to stay on the sidelines until a confirmed bottom is established before considering positions.
- Swing trading strategy: Observe whether 2,400 USDT can hold, and if it breaks above 2,433 USDT, consider small long positions.
Risk Recommendations
- Currently in extreme panic, with high volatility (around 19%), market can change at any moment. Stop-loss levels must be clearly set.
- Insufficient volume raises doubts about the sustainability of the rebound. Do not blindly chase the rebound.
- If the technical support at 2,241 USDT is broken, the downside space will further open, requiring strict risk management.
- It is recommended to operate in batches and leave sufficient safety margins, especially in high volatility environments.