Many people have been asking me recently about the ETH market outlook. Instead of listening to rumors or following the crowd, let's analyze the current market directly from the technical charts. Today, I will pull up daily, four-hour, and hourly data to dissect the current situation from three perspectives: patterns, indicators, and volume.
**Pattern Analysis: Concerns about 连阴 and Wedge formations**
The ETH daily chart currently shows a clear sequence of consecutive bearish candles, with the price consistently staying below the main moving averages, indicating a typical bearish trend. More notably, recent candlestick combinations have formed a descending wedge pattern. This pattern is common during downtrends; once the price breaks below the lower boundary of the wedge, it often triggers a new wave of decline. This is the first risk.
**Indicator Analysis: MACD divergence signals**
On the hourly level, the MACD bearish momentum continues to be released. Although the four-hour chart is approaching oversold territory, there is no bullish crossover signal to confirm a rebound. Instead, it resembles a "top divergence" — the price shows a rebound but the indicator fails to make new highs. This suggests a problem: the rebound momentum is insufficient, and the apparent upward move may just be a trap, not a genuine turnaround.
Volume truly reflects the market sentiment. The recent holiday effect caused liquidity to dry up significantly, which is directly reflected in ETH’s trading volume — each rebound is weaker than the last, with volume gradually shrinking. What does this imply? The buying interest behind each rebound is weakening, and the persistently weak volume cannot support a meaningful price increase.
Overall, the pattern indicates risk, the indicators lack confirmation, and volume is clearly insufficient. All three point in the same direction. The market needs to see a volume-supported breakout; otherwise, the current rebounds are just fleeting illusions.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
18 Likes
Reward
18
6
Repost
Share
Comment
0/400
LayerZeroJunkie
· 12-26 21:52
The shrinking volume is really hitting home; each rebound is not as strong as the last, feels like all just fake signals.
View OriginalReply0
HalfIsEmpty
· 12-26 21:51
Liquidity is indeed the key; it feels like this rebound is just a bluff.
View OriginalReply0
ServantOfSatoshi
· 12-26 21:39
Another round of technical analysis bombardment, but honestly, volume is the real killer...
---
The term "market manipulation" is used perfectly; each rebound is weaker than the last, truly despairing.
---
No, the combination of a downward trend + wedge + divergence + contraction... is this tech supposed to scare retail investors to death?
---
The successive shrinking of trading volume really hit home; liquidity during holidays is already bleak.
---
Waiting for a breakout with volume? Might be waiting a long time.
---
So now it's just lying flat and watching; anyway, rebounds are all fake.
---
When the wedge broke to a new low, I knew I should panic, but the problem is, I'm still looking for support.
---
Triple confirmation all signals are bearish; now I feel relieved... time to sleep peacefully.
---
The top divergence is the most insidious; it looks like a rebound but is actually a trap.
---
Volume is the true reflection; I will remember this sentence.
View OriginalReply0
SocialAnxietyStaker
· 12-26 21:32
The shrinking volume is really disheartening; every rebound lacks strength.
View OriginalReply0
SolidityNewbie
· 12-26 21:32
To be honest, the pattern and momentum look completely empty at first glance. I'm very familiar with the trick of deceiving rebounds.
View OriginalReply0
TopEscapeArtist
· 12-26 21:28
Damn, as soon as this descending wedge appeared, I knew I was going to take a hit. I should have cut my losses earlier.
Many people have been asking me recently about the ETH market outlook. Instead of listening to rumors or following the crowd, let's analyze the current market directly from the technical charts. Today, I will pull up daily, four-hour, and hourly data to dissect the current situation from three perspectives: patterns, indicators, and volume.
**Pattern Analysis: Concerns about 连阴 and Wedge formations**
The ETH daily chart currently shows a clear sequence of consecutive bearish candles, with the price consistently staying below the main moving averages, indicating a typical bearish trend. More notably, recent candlestick combinations have formed a descending wedge pattern. This pattern is common during downtrends; once the price breaks below the lower boundary of the wedge, it often triggers a new wave of decline. This is the first risk.
**Indicator Analysis: MACD divergence signals**
On the hourly level, the MACD bearish momentum continues to be released. Although the four-hour chart is approaching oversold territory, there is no bullish crossover signal to confirm a rebound. Instead, it resembles a "top divergence" — the price shows a rebound but the indicator fails to make new highs. This suggests a problem: the rebound momentum is insufficient, and the apparent upward move may just be a trap, not a genuine turnaround.
**Volume Analysis: Market apathy behind shrinking volume**
Volume truly reflects the market sentiment. The recent holiday effect caused liquidity to dry up significantly, which is directly reflected in ETH’s trading volume — each rebound is weaker than the last, with volume gradually shrinking. What does this imply? The buying interest behind each rebound is weakening, and the persistently weak volume cannot support a meaningful price increase.
Overall, the pattern indicates risk, the indicators lack confirmation, and volume is clearly insufficient. All three point in the same direction. The market needs to see a volume-supported breakout; otherwise, the current rebounds are just fleeting illusions.