1.21 Auntie

As a core target of mainstream cryptocurrencies, continuously highly correlated with Bitcoin, in the context of Bitcoin breaking down and bearish sentiment fully fermenting, Ethereum’s bullish buying momentum shows no significant support. Signs of capital fleeing the market are obvious, and the 2900 level has become the key psychological support in the current bulls and bears game. The ongoing unilateral decline has formed a strong bearish inertia, and short-term rebounds cannot reverse the trend; instead, they provide better entry points for bears. Once the 2900 level is effectively broken, the downward space will further open up.

Relying on the critical resistance level of the rebound, gradually establish short positions, avoid participating in weak rebound rallies with long positions, strictly adhere to stop-loss discipline, and guard against small-scale false bullish rebounds. The target is directly aimed at the key support zone below, capturing trend-based bearish profits.

Trading Suggestions

Short: When the price rebounds to around 2970-3000, gradually enter short positions, targeting a move down to the 2900 level. If this level is effectively broken, follow through to around 2800, and add to positions with light holdings after the breakdown.

If the price breaks through the 3030 resistance level during a rebound, the short-term weak rebound pattern may escalate. Immediately exit and observe, wait for new resistance levels to form, and then re-plan short positions; if volume and stabilization signals appear at the 2900 level, temporarily exit and observe, avoid blindly chasing shorts, and mitigate short-term risks of oversold rebounds.