ETH Weekly Report | The long side is slowly advancing and there is a hidden crisis. It is not advisable to increase positions and chase the rise in the short term

1. Market highlights <br/>Current Ethereum price: 2260
Volatility last week: 15.37%
Operation suggestion: reduce positions appropriately to avoid risks

Daily chart
2. Trend Analysis <br/>As analyzed last week, with the continuous rise in prices, the divergence of indicators such as MACD and KDJ is becoming increasingly serious. The bulls need to adjust to resolve the pressure from the upper supply. In addition, with the rapid development of prices, if prices fail to break new highs, greater dangers are brewing, and investors need to be vigilant.
Looking at the daily chart, the price of Ethereum is still running in the rising channel that started on July 17, and has now touched the lower support line of the channel. According to the channel operation method, you can test the water with a light position here, but in order to improve safety, it is recommended to wait until the decline stops before entering.

From the 3-day chart, Ethereum rebounded and fell below the previous high, and the overall trend showed a slightly symmetrical triangle pattern. However, overall, the trading volume did not show signs of gradual shrinkage, and it is expected that the price in the future market will fluctuate within this pattern for a long period of time.
Basically, the symmetrical triangle is a neutral pattern and has no predictive value for bullish or bearish sentiment. In other words, when the price trend shows a symmetrical triangle, it is not surprising to break through upward or downward. However, based on past experience, when a symmetrical triangle pattern appears in an upward trend, it is very likely to break through the resistance line upward.
After Quantum warned of the top risk last week, although the price broke through the previous high, the trading volume was significantly lower than the previous high, and the MACD indicator showed an obvious top divergence phenomenon, and the possibility of a false breakthrough was high. The short-term support level is 80, and the medium-short-term support level is 50. When the price shows a clear stop-fall phenomenon at these two price levels - such as a rebound after a large-volume decline, a double bottom, etc., it is time to enter the market.
ETC
On September 1, ETC saw a significant rise, but as the currency zone has always emphasized, when the conditions are not ripe, a big positive line will often be accompanied by a correction in the future. Currently, ETC is in an upward trend, and the short-term focus is on the support level of 100~110.