ETH 12.26 Pre-Holiday Morning Journal: Liquidity Returns, Confirming the Bottom

Current Price: Around $2985 - $3000

Did you jump into that pit? Looking back at the 24th, everyone blindly bought the bloodied chips near 2945, which now appears to be the only golden pit before the holiday. Although trading volume has been embarrassingly low these past two days, the support at 2920 has held firm every time. What does this indicate? It shows that at this level, the bears have no bullets left. The current price has retraced to around 2990, and brothers holding low-position chips should now be the most stable in mindset.

Today's main event: US stocks return. Today is Boxing Day, and European and American funds are gradually returning to their posts. The biggest change will be an increase in trading volume. The past 48 hours of low-volume oscillation are not very meaningful; the trend from this afternoon to tonight will truly determine the direction. Bulls need to prove themselves by breaking 3020 with volume today; as long as they hold above it, the pre-holiday decline is just a standard shakeout.

How to operate?

For those holding positions (entered below 2950): Don’t rush to sell. Your cost advantage is significant. Raise your stop-loss to your cost basis (e.g., 2950) for protection, and aim for a strong start after the holiday. Since you've endured the toughest, most miserable time, you should now enjoy the benefits of liquidity returning. First target: 3080.

For those with no positions: The current 2990 level is quite awkward, sitting right in the middle. It’s recommended to wait for a clear signal: either wait for a pullback to 2960 to confirm it won’t break and then enter, or wait for a strong breakout above 3020 to chase on the right side. Don’t gamble on big moves at middle prices; it’s easy to get caught on both ends.

One sentence summary: The most panic has already passed. As long as the pits dug before the holiday are filled, the road ahead will be smooth. Hold onto your low-position chips and wait quietly for the US stock market to open in the evening to lift the market.