ETH Consolidates: Where Are the Trading Opportunities Amid Volume-Price Divergence Signals?

Question

[Crypto World] Since December 7, ETH’s 4-hour chart has been quite interesting. The price has been oscillating within the 3021.78-3208.15 range. The recent few candlesticks are small bullish bars—while the closing price is higher than the opening, trading volume has clearly shrunk. This kind of price-volume divergence is actually quite risky, indicating that upward momentum is fading.

From a technical perspective, the MACD histogram remains positive but is gradually shortening, showing that bullish strength is weakening. The KDJ indicator has soared to 85, already entering overbought territory, so there’s considerable short-term pullback pressure. More importantly, although the MA10 is still above the MA30, the price action is already showing signs of fatigue.

Currently, the price is hovering around 3006.67, with support below at 2982 and resistance above at 3153. For positioning, you could consider building positions in batches at 2967.95 or 3027.27, with a stop loss set below 3006.67. For aggressive traders, you could chase long positions after a breakout above 3153, targeting 3234.14, but be sure to set your stop loss at 3224.19.

This kind of choppy market really tests your patience. It’s more prudent to wait until the direction is clear before taking action.

NFTragedy · Accepted Answer

The old trick of volume-price divergence has been played out. Every time it's said to be dangerous, but nothing happens... However, KDJ soaring to 85 is indeed a bit risky. I'll still wait and see if it can drop to 2967 and break the single digits before getting in.

FortuneTeller42 · Answer

The divergence between volume and price, huh? This trick is played the same way every time, and the result still ends up breaking the level.

AirdropNinja · Answer

I'm tired of the divergence between volume and price. Every time it's considered dangerous, but it still goes up and down... However, with the KDJ soaring to 85, it's indeed a bit risky. Let's wait and see.

WinterWarmthCat · Answer

Price divergence is a trap, I keep falling for it every time. Will I lose again this time?

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KDJ is already at 85, still dare to catch the bottom, true hero haha

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Wait, should we wait for a pullback to 2982 before entering? Feels like it's not quite there yet

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Fatigue? Why does ETH always seem tired lately? When will it explode?

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Dividing into batches to build positions sounds good, but I don't have enough money, haha oh well

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Overbought but still rising, that's crazy in this industry

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Feels like I'm about to get trapped again, who made me so careless

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The resistance at 3153 is a bit tough, can't break through?

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A bit weak, be careful of a smash down

GasGuru · Answer

The theory of volume-price divergence always sounds right, but when it comes down to critical moments, you still have to see how the main players operate.

governance_ghost · Answer

I really hate price-volume divergence the most. It looks like it's going up, but it's actually deceptive. If the momentum is exhausted, what's the point of playing anymore?

GateUser-7e544805 · Answer

Divergence between volume and price, sideways consolidation followed by another drop

CounterIndicator · Answer

I'm tired of hearing the same rhetoric about price-volume divergence. Every time they say it's exhaustion, it ends up surging instead. If you believe them, you're doomed.

TokenomicsPolice · Answer

You really need to be careful with the divergence between volume and price. Right now, it's a typical case of inflated prices, which can easily crash down.

CommunitySlacker · Answer

I've seen this price-volume divergence trick many times—eight out of ten times it's just a fakeout. Better to wait for a real breakout before making a move.