ETH Weekly Report | Wide adjustment at high level, new pattern determines direction

1. Market highlights <br/>Current Ethereum price: 338.61
Volatility last week: 9.85%
Operation suggestion: In the formation, participate with a light position

Daily chart
2. Trend Analysis <br/>Last week, the analysis of indicators showed that the price of Ethereum fluctuated in a narrow range, waiting for the market to choose a direction. However, when the market broke through the upper line of the flag last Wednesday, there was no convincing trading volume, and then it entered a pattern of gradually shrinking volatility and trading volume. At present, the price of Ethereum is in a critical period of formation. If it succeeds, it will be a strong bullish pattern. Similarly, if it fails, it will also be a strong bearish pattern.
Looking at the daily chart, the moving average system (5, 10, 20) is scattered, and the MA60 slides from upward to flat. As shown in the figure, if the price of Ethereum effectively breaks through the neckline, a diffuse head and shoulders pattern will be formed at the top, and the MACD indicator will form a dead cross, then the possibility of a mid-level adjustment will increase. If the volume breaks through the previous high, the bulls will launch a new round of offensive.

12-hour chart Looking at the 12-hour chart, the moving average system shows a weak bullish arrangement, and the MACD indicator crosses the zero axis and runs in the strong area, indicating that the bulls are stronger than the bears. As shown in the figure, the price of Ethereum rose slightly last Wednesday and then fell back to a narrow range of fluctuations, showing a slightly handle teacup shape. If the price breaks through the tea handle with large volume, the market outlook is bullish, and if the formation fails, the market outlook is bearish.
Overall, the trading volume of the above two patterns is well coordinated, with a surge in the early stage and a gradual shrinkage during the wide adjustment at high levels. In addition, the market tends to be bullish, and the possibility of successful formation is relatively high, but investors are still advised to participate with light positions, strictly set stop loss and take profit points, and add positions after the trend is confirmed.