Something major has happened! Today, ETH experienced an extremely strong trend, from being squeezed by short sellers in the morning to a sharp surge, and finally a pullback to close. It was truly thrilling.

As a seasoned blogger in the crypto space, let me break it down for you and teach you how to interpret this market movement.

News Brief

Inflation data approaching

The market is currently focused on the U.S. May CPI. If inflation decreases, it may prompt the Federal Reserve to adopt a dovish stance, leading to a rally across the entire crypto sector—including ETH, which shows strong short-term performance.

Institutional capital continues to flow in

ETH perpetual contract trading volume continues to grow, now accounting for over 45% of BTC. Additionally, futures volume has reached an all-time high, indicating significant accumulation by institutions and asset management products. The ETF and options markets are also becoming increasingly active and are worth continuous attention.

Frequent accumulation actions by major players

In the past 7 days, addresses accumulating ETH have entered the market with over 400K ETH, indicating that large holders are quietly positioning themselves.

Comprehensive technical analysis

Key support/resistance

Current price is around $2,770, with short-term support at $2,720–$2,740 and resistance at $2,850–$2,880.

On the 4-hour chart, the MA7/30 moving averages are turning upwards, the MACD shows a golden crossover, and the Bollinger Bands are beginning to open, providing a technical signal for continued breakout.

Volume alignment

Seeing OI at a new high indicates that trading enthusiasm is rising. If accompanied by sufficient trading volume, a breakthrough above resistance could lead to further upward movement into potential higher ranges.

Fluctuating rhythm

Recently, a pattern of "rise—consolidation—rise" has emerged. Yesterday, after touching $2,878, it slightly pulled back to $2,770, completing a retracement within a day, validating strong support, and looking for a short-term rebound.

Market sentiment personal opinion

Honestly, when I entered the market this morning, I was still cautious: afraid of being washed out by a false breakout. But seeing such strong capital flow, coupled with the rhythm of the market, it is highly likely that the major players are accumulating, gradually pushing prices up.

Some people have asked me if it will pull back to $2,650? Personally, I think there is no need to worry too much. With the Federal Reserve's dovish stance and institutional involvement, the probability of a breakthrough with volume is greater. On the contrary, there might be a surge after a retracement to directly reach the next echo zone of $3,000.

However, if the CPI is indeed very high, leading to significant leverage-driven fluctuations, it cannot be ruled out that there might be an intraday pullback to around $2,700 before making decisions. For the short term, I suggest adopting a light position to manage risk.

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