Short-term Downtrend Channel Strategy

Current Secondary (Alt2) is in a clear short-term descending channel on the 1-hour timeframe. Price has retreated from the 2385.78 high and is currently trading around 2062, with bearish sentiment dominating the market.

Technical Analysis Core Signals

Moving Averages & Trend: All short-term EMA lines are diverging downward with price pressured below the moving averages, forming a typical bearish alignment. The upper band of the descending channel provides clear resistance, while the lower band points toward the 2000 round level.

Indicator Performance: After MACD lines crossed below, they are running below the zero axis with green histograms continuously releasing bearish momentum. Trading volume has contracted compared to earlier periods. While selling pressure has weakened periodically during the decline, buy-side rebounds remain insufficient.

Key Price Levels: First support at 2000, with second support at 1918.39 after breakout, and deep support at 1806.25. Resistance overhead near 2097.37.

Trading Strategy & Risk Management

Shorting Strategy: On bounces toward the channel upper band (2100-2120 zone), consider shorting with stop loss above 2140, targeting 2000 and 1918.

Longing Strategy: Aggressive traders may attempt light long positions at 1918 or 1806 support levels upon volume contraction and price stabilization, with stop loss placed accordingly and targets at 2050-2100.

Risk Management Core: All positions must have stop losses. Given current severe market volatility, prioritize risk control and avoid holding positions without stops.

Near-term outlook remains dominated by oscillating downside movement. Watch the effectiveness of the 2000 support level—a breakdown will lead to further downside, while a breakout above the channel upper band could potentially reverse the trend. #ETH