Something big has happened! Today the ETH market has undergone a "dramatic change," plummeting from around 2.8K to 2,486 dollars. See the technical side in the chart: MACD green bars are being pulled straight down, trading volume has exploded, and the main force is clearly offloading before the holiday—there are truly not many genuine traders in this market.
Technical Analysis
Major Drop: ETH has fallen from a high of 2,878, breaking the 7-day and 30-day moving averages, clearly indicating a weakening long-term trend. The current price only has support in the 2,300–2,500 range. MACD is heading straight into negative territory, DIF is far from DEA, and there may be an acceleration in the downward movement.
Surge in Trading Volume: A large bearish candle accompanied by explosive volume indicates that short positions have significantly entered the market, and short-term bulls may be washed out, lacking buy support intraday.
Key Support to Watch: Looking ahead, around 2,312 dollars, if broken, this support level could lead to a further drop near 2,200. On the rebound, 2,645–2,700 will be a major obstacle; bulls shouldn't expect to breathe if it doesn't break.
Impact of News
Middle East Situation Impact: Today's significant event of Israel striking Iran has triggered risk-averse sentiment, with funds temporarily flowing into gold, while Bitcoin and ETH are also under pressure to adjust, with BTC down 3% and ETH dropping even more.
Easing Inflation Expectations: U.S. CPI data shows a cooling of inflation, driving Bitcoin and ETH to rebound earlier this week, but sudden geopolitical turmoil immediately disrupted the rhythm.
Institutional Inflows Continue: June ETF flows are ongoing, with CoinDesk data showing ETH ETFs recently maintaining high inflows, indicating that institutions have not completely lost confidence.
However, sentiment has now turned cautious, and funds may temporarily observe.
Today's Trading Suggestions (for reference only)
Short-term: If it breaks below 2,450, continue to follow short positions, with stop-loss set above 2,500.
Medium-term: If it can hold the 2,400–2,480 range, consider buying 1/3 of the position at lower levels, targeting 2,800–3,000.
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