ETH Weekly Report | Volume adjustment, waiting for direction selection

1. Market highlights <br/>Current Ethereum price: 303.02
Volatility last week: 20.85%
Operation suggestion: Wait and see, wait for the direction
2. Trend Analysis <br/>As analyzed last week, the price of Ethereum has entered wave A after five waves, and this wave has more negative lines, which is in an adjustment and oscillation pattern. From the daily chart, we can see that the price of Ethereum continued to fall last week. At present, it is a critical period for choosing a direction, and investors should pay close attention to market dynamics. Looking at the daily chart, the moving average system (5, 10, 20) is scattered, and the price has fallen to the pressure line of the previous consolidation (now it has become a support line after breaking through). In addition, the recent highs and lows of the Ethereum price rebound are gradually decreasing, forming a parallelogram trend. If the market breaks through the upper line of the quadrilateral with large volume in the future, it is still bullish. If it fails, it will continue to fall. At the same time, the volume gradually shrinks in the consolidation range, indicating that the market will soon choose the direction. Looking at the 12-hour chart, the current price of Ethereum is in a triangle pattern, and during the period of pattern adjustment, there is a slight phenomenon of price increase and volume increase, price drop and volume reduction, but overall trading volume continues to shrink. At present, the price fluctuates to the end of the triangle and stagflation occurs. At the same time, the MACD indicator crosses the zero axis from top to bottom, and the area of ​​the red bar chart representing the strength of the short side slowly shrinks. If the market breaks through the upper line of the triangle with large volume, the previous upward trend will continue. But if the market breaks through the lower line of the triangle with large volume, the previous upward trend will come to an end.
Overall, due to the excessive increase in the previous period, the selling pressure of profit-taking was heavy, which overdrew the increase after the price broke through the upward pattern. At present, the price of Ethereum is choosing a direction. It is recommended that investors participate with a light position when it breaks upward, and wait for the market to step back to confirm the effectiveness of the breakthrough before adding positions appropriately. Stop loss and take profit points must be strictly set to prevent potential uncertainties in the market.