Is a short-term pullback an opportunity or a risk?

From the technical chart, the main reason for the current relatively weak market is that the RSI indicator is still under the suppression of the downward trend line from the high point in January this year. Only after a breakthrough can it be expected to fluctuate and strengthen. Before the breakthrough, it can only maintain range fluctuations. This suppression line has been tested many times, but the amplitude of each adjustment is getting smaller and smaller, which indicates that the short-selling forces are gradually exhausted, and the possibility of being broken through by the bulls in the future is gradually increasing.

The longer the consolidation lasts, the greater the force of the breakthrough will be. What is needed now is patience. The previous sharp drop has driven the short-term moving average system to a downward short position. The current range oscillation helps the adhesion and entanglement of the moving average system. Once the upward change occurs later, a new round of market will begin, and the MACD fast and slow lines are still extending upward. The recent adjustment volume is general. The divergence rebound at the daily level formed in the previous period is expected to continue, and the short-term decline is mainly low-absorption.

ETH

Since ETH broke through the median line of the long-term upward channel in the early stage, the big adjustments in the following period have not fallen below the trend support line, and have not broken the 0.618 support level from the previous peak, nor the 312 low point rising trend line. The price rebounded here, so it is obviously unreasonable to say that the bull market is over now. In the bull market trend of 2017, it can be found that there was also a big adjustment in the middle of the year, with a decline of up to 68%. The current maximum adjustment from the high point of 4,380 US dollars is 61%, which is less than that in 2017. The lowest adjustment in 2017 was also around the 0.618 support line, and then continued the bull market to a new high after consolidation. Therefore, if ETH can stabilize and bottom out in this area, it will be expected to set a new historical high in the future. At present, under the effective support, don't blindly be bearish.