ETH reached a new high this morning, peaking at 1857, approaching the daily 60 moving average resistance and the upper band of the Bollinger Bands. The daily volume has not shown significant contraction, and there may still be fluctuations in the short term. However, a top divergence signal has appeared at the 4-hour level, indicating a potential pullback.
News: The Chinese foreign ministry and the U.S. embassy have once again stated that there has been no initiation of contact for negotiations between China and the U.S.; Trump also commented that China can only reduce tariffs through compromise, meaning there is nothing to discuss!
For ETH, watch for support at 1800 and 1790. A break below these levels may confirm the initiation of a downtrend. For the daily level to break through the 60 moving average, it needs to be accompanied by a significant increase in volume, but with the weekend's trading volume reducing, the difficulty of breaking through is considerable. If the top divergence at the 4-hour level confirms at the close of 12, ETH is likely to gradually pull back.
Key resistance level to watch above is 1820 (midline), and below, closely observe if 1790 is broken by a large bearish candle to determine trend reversal.
Strategy: Aggressive traders may establish short positions near 1820, adding to positions near the previous high of 1857, with a stop loss set at 1910; conservative traders are advised to wait and observe until the trend becomes clearer before acting.
