Ethereum Current Trend Analysis: Consolidation at the Bottom, Bull Market Still On!The recent decline in the crypto market has left many investors anxious, but Ethereum has shown resilience and has not broken below its previous low. Its strong performance is still worth watching
Ethereum Current Trend Analysis: Consolidation at the Bottom, Bull Market Still On!
The recent decline in the crypto market has left many investors anxious, but Ethereum has shown resilience and has not broken below its previous low. Its strong performance is still worth watching.
We analyzed Ethereum's chart using the "Potential Dragon Strategy" and found some noteworthy signals:
1. Signs of Bottom Formation in the Parallel Channel
The current pullback has formed a parallel channel pattern, which is slightly tilted downward. Within this channel, bear power is shrinking, and the price has not fallen below the previous low, indicating that bear power is weakening.
2. Strong Support at $2,800
$2,800 is not only an important support level, but also the lower band of the Bollinger Band. The recent price failure to break below this support indicates strong support below.
3. Oscillation Range is Not the Top
Overall, ETH is currently trading within a larger oscillation range. During the two declines, the bear power gradually shrank, while the last rise was accompanied by increased bull power. This suggests that the current trend is not a top, but rather a consolidation at the bottom.
4. Bull Market Background Support
Trend analysis should not only look at the shape, but also pay attention to the trend background. Ethereum is currently in a bull market environment, and the launch of Ethereum ETFs is getting closer. Both factors provide strong support for Ethereum's future performance.
5. July Upward Trend Outlook
In last month's analysis, I pointed out that there would be a good upward trend in July. After the pullback at the beginning of the month and the observation of the current chart trend, I am more confident in this prediction. The next trend is worth looking forward to.
6. CPI Data Interpretation: Higher Probability of Positive News
The CPI data to be released tonight has sparked anxiety among many investors. However, we believe that in the context of a bull market, any news can be manipulated by major players, so bears need to be cautious.
We prefer to infer news from chart trends, rather than the other way around. Observing the current Ethereum trend, we boldly predict that the CPI data tonight is more likely to be positive than negative.
It is important to note that the above analysis represents only personal opinions and does not constitute any investment advice. Investment involves risk, and caution is advised.
Summary:
Ethereum is currently in a consolidation phase at the bottom, with decreasing bear power and strong support. The bull market background and the upcoming ETF launch provide strong support for Ethereum's future performance. We expect tonight's CPI data to be more likely to be positive, but investors should still remain cautious and invest rationally.
Here is some additional analysis that can help you better understand Ethereum's current market environment:
- Macroeconomic Environment: Although the Federal Reserve's rate hikes have put some pressure on the crypto market, signs of a global economic recovery are still evident. This provides a positive signal for the long-term development of digital assets like Ethereum.
- Technological Development: The ongoing development of Ethereum 2.0 and the emergence of various DeFi applications are continuously strengthening Ethereum's ecosystem, attracting more users and developers to join.
- Institutional Investment: In recent years, more and more institutional investors have begun to pay attention to and invest in Ethereum, which will further drive the price of Ethereum up.
Finally, remember that investing is a risky endeavor, so make wise decisions based on your own risk tolerance and investment goals.
Happy investing!
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