ETH 4-hour technical review: Bullish engulfing appears, but volume is shrinking

2025-12-06 08:03:14

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[Crypto World] ETH’s recent 4-hour trend is quite interesting.

Starting from 16:00 on December 5, the price surged, but compared to the high at 12:00 on December 4, it pulled back again. On the candlestick chart, a bullish engulfing pattern appeared, ultimately closing with a bullish candle.

Trading volume? It’s shrinking. Both price and volume are declining, making the market noticeably quieter.

The MACD histogram has remained negative, but it’s gradually narrowing—bullish momentum is accumulating. The KDJ is hovering around 29, without a golden cross or death cross, staying neutral.

As for moving averages: the MA10 continues to stay above the MA30 (both at 20:00 on December 5 and 00:00 on December 6), but the overall trend is still bearish, showing a divergence between price and volume.

Key price levels: Support at 2981, resistance at 3247. The recent high is 3210.13, with the lowest drop to 2740.8.

Trading strategy reference: Long entry zone: around 2888.29 or 2739.42, with stop loss at 2727.1 Short entry zone: 3247 or 3243.52, with stop loss at 3226.18

This position is quite tricky right now, so it’s recommended to wait for a clear direction before entering.

ETH6.47%

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ser_aped.eth

· 20h ago

With such a shrink in trading volume, no matter how impressive the bullish engulfing is, it’s still useless.

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PrivateKeyParanoia

· 12-06 08:31

Volume contraction combined with a bullish engulfing? This combo seems a bit deceptive—it feels like it's just building up strength before a bull trap.

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PortfolioAlert

· 12-06 08:28

The divergence between volume and price is an old trick. Every time they talk about volume accumulation, it still ends up breaking the bottom. I don't really trust that long position at 2888.

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CounterIndicator