Ethereum Trend Analysis on December 23:
After a rapid rebound at the 3100 price level last Friday, the market showed a fluctuating downward trend over the weekend, closing the weekly candle with a engulfing bearish candle, forming a top formation structure, indicating extremely strong bearish forces.
The daily K-line body is showing a downward trend along the MA5 moving average, and attention should be paid to the gains and losses of the 60-day moving average. It is significant whether today’s closing can hold above this moving average.
The overall trading strategy for this week is to set up medium to long-term short positions when encountering rebounds below the 20-day moving average. If the price remains above 3100 without making a new low, short-term long positions can be attempted, but if it breaks below the 3100 level, stop losses should be executed immediately.
Attempting to catch a rebound against the trend carries high risks, but defending the 60-day moving average is worth a try. It is essential to remember one principle: the long position must be smaller than the short position.
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