Remember that warning on December 9th — ETH was likely to first hit a high point and then start to correct. This week's rhythm basically aligned with the prediction. As a result, on December 11th, ETH shot up to 3447.44 and then turned downward, dropping 16% so far. The speed and magnitude did exceed expectations a bit.

For friends who have been following closely, this decline shouldn't be unfamiliar; I kept reminding everyone last week. However, the rapid and fierce drop still caught some off guard. So, what should we do now?

Simply put: ETH is currently in a correction phase, not the start of a new downtrend. But this correction likely still has room to fall, and the key is to hold the support level. Strategically, you should first watch for signs of a bottom on smaller timeframes. Once the hourly chart confirms a bottom, you can try to go long, and only consider adding positions once the daily chart also confirms a bottom.

How to find a suitable entry point? Look at last night’s 1-hour K-line chart (图2). The red line marks the price range drawn the day before yesterday. This kind of K-line pattern — breaking through the range without any pause, and the rebound not being very strong — my approach is to continue waiting. Based on the current market situation, the bottom of this correction probably isn't too far away.

Once the bottom of this correction is found this week, ETH will continue to break upward next week, targeting 3500. Keep a close watch, and I will update immediately if any abnormal situations occur.