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Recently, the Ethereum market has shown a strong rising trend, with consecutive four weeks of Bullish lines on the weekly chart, and the body of the Bullish lines is quite full. This continuous rising trend indicates strong momentum in the market. However, despite the increase in volume in the short term, the price is consolidating at a high level, neither breaking through new highs nor showing significant pullbacks, still maintaining a strong stance.
Although the market remains strong, technical indicators have entered the top divergence area, suggesting that a certain degree of adjustment may be needed. Considering the previous continuous rise in volume, the current sideways consolidation cannot be viewed as a high point, but after a large amount of trading, it is easy to form a market top. Therefore, after this tail-end rise in volume, investors should be cautious when chasing highs.
The market rhythm may continue to oscillate at high levels, creating a washout effect. The trend may instinctively reach new highs before retreating, posing a challenge to traders' immediate response capabilities. It is recommended that investors closely monitor market patterns and flexibly adjust their strategies. After prices rise, it may be worth considering moderate short-selling operations to hedge risks.
Overall, the market may still be dominated by a bullish trend in the short term. However, given the current complexity of the market, investors need to remain vigilant and adjust strategies as needed to respond to potential market changes. When making any trading decisions, it is essential to consider multiple factors comprehensively and manage risks appropriately.