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Recently, the market has been quite interesting—ETH has exhibited a typical oscillation pattern, and short-term bearish signals are gradually emerging.
Looking at the 1-hour K-line, the price repeatedly tests around 3118, with clear resistance at 3150 above. The Bollinger Bands are tightening now, with the upper and lower bands narrowing significantly, which usually indicates an imminent breakout. Currently, the price is trading below the middle band, showing obvious weakness.
The MACD performance is even more intriguing. The fast and slow lines have already crossed downward near the zero axis, and the green momentum bars are beginning to appear. What does this mean? The bullish momentum is waning, and the bearish force is quietly gathering. The trading volume has also decreased accordingly, indicating increased market divergence at this level, and the direction will be decided in an instant.
From a trading perspective, the price has been repeatedly resisted around 3140, and the resistance above is indeed strong. Coupled with the weakening MACD signals, I tend to believe that the price will first test the support level downward.
**The trading plan is as follows:**
Enter between 3135-3140, with a stop-loss set above 3155. The first target is around 3100, and the second target is near 3080. Roughly calculating the risk-reward ratio, a stop-loss of about 20 points aiming for 40-60 points profit offers a ratio over 2:1, making it a reasonable trade based on probability.
Of course, no strategy is foolproof. If the price strongly breaks above 3150 and stabilizes, this short-selling approach should be adjusted promptly. The market is always right; we just follow it.
Finally, a reminder—don't be greedy. Keep your position size within 10% of your total funds, set proper stop-losses, and avoid letting a single misjudgment turn into a disaster for your account. The market is constantly changing, and our job is to respond flexibly based on signals. Let’s see if we can first get a decent correction out of this move.