The bull market has sharply declined; pay attention to changes in volume and price. After the major coin broke through 108,000 with volume, it just failed to test 110,000 again. It is clear that the current top has formed a dividing line between bulls and bears at 110,000.
After the failed test, there was a sharp drop, and the current price is around 107,000. If it breaks below 106,500 on the 4-hour chart, it will form a bearish engulfing pattern, and it is very likely to drop again to test support around 105,000. If this support-resistance level is broken, it will signal a reversal for our long positions, and the market will weaken again. Therefore, we need to be cautious of the price below 106,500; a drop to repair the shadow gap is normal, or it could go up to test 110,000!
106,500 can be attempted for a long position, aiming for a breakthrough at 110,000, and then looking at 110,300!
Ethereum has not made a real breakthrough at 2,580; this sharp drop is more normal. The next step is whether it can gain strength—at least it should not fall below the range of 2,500-2,480 to be able to look at 2,700.
