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ETH, the market is experiencing a net outflow of funds, with only a slight net inflow of 2,520 tokens yesterday. The weak liquidity, coupled with inflationary selling pressure from the Proof-of-Stake (PoS) mechanism and continuous new token inflows, has resulted in insufficient rebound momentum. A death cross has formed on the weekly chart, indicating insufficient consolidation at the bottom. The probability of a significant short-term rebound and a return to an upward trend is extremely low. The daily chart shows a descending wedge pattern, suggesting a potential drop below the target level towards 1600. In a major downtrend, all rebounds should be viewed as opportunities to short. The four-hour chart shows a downward trend with lower highs and lower lows, forming a double top (M-top). Short should be initiated above 2125; avoid chasing the market higher.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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