Recently, the performance of ETH has been quite interesting. This wave of violent Long Wick Candle before and after Christmas not only stunned the long positions, but the short positions also didn't gain any advantage. What exactly happened behind this?

Let's start with the market environment. During the Christmas week, overseas institutional investors basically entered holiday mode, and the overall market trading volume has significantly decreased. In this environment of insufficient liquidity, a small amount of funds can create a big impact. Additionally, as the year-end approaches, various funds are undergoing annual settlements and withdrawals, and some short-term funds want to exit quickly taking advantage of the volatility, which creates a market that is easily "washed."

The key is how to determine whether this wave of Long Wick Candle is the main force "washing out the positions" or if they really want to crash down. Here are two hard indicators worth paying attention to:

The first is the rebound speed after the Long Wick Candle. This time, ETH recovered most of the decline in less than an hour after the Long Wick Candle, what does this speed indicate? It indicates that there is a strong willingness for funds to catch the falling knife below. If the main force really wanted to escape, they would not give the market such a quick rebound opportunity, and there should be continuous pressure.

The second is the performance of the key support level. This rebound just stabilized at the important support level from before, and the significance of holding this position is substantial—it indicates that the support system below is intact. Conversely, if there were a real sell-off, these key levels would have been breached long ago and wouldn't be able to hold back.

Considering these two details together, the long wick candle resembles a washout operation. The purpose is nothing more than two things: to clean up floating chips and to test the willingness below. From the results, the market's resilience is still present.