7.21 Ethereum Evening Analysis
Ethereum has broken through with consecutive bullish candles, and there has been no significant pullback on the daily chart, indicating that bullish funds continue to flow in, with the short-term trend still dominated by buyers.
- Key resistance level: $4000 is a psychological barrier, but be aware that there may be some profit-taking pressure in the 3900-3950 range (such as derivatives hedging or institutional profit-taking).
- Support levels: 3770 (short-term), 3680 (trend watershed), if the pullback does not break 3680, then the upward channel remains valid.
- During Bitcoin's sideways movement, funds may flow into Ethereum and altcoins (especially if the ETH/BTC exchange rate strengthens), reflecting an increase in market risk appetite. Attention should be paid to whether Bitcoin experiences sudden fluctuations (a 'blood-sucking' market may trigger an ETH pullback).
Trading suggestion: A light short position between 3830-3850 is feasible, but strict stop-loss (3920) is necessary; a more prudent strategy is to wait for a resistance signal above 3900 or to intervene after the risk in U.S. stocks is released. If the 3680 support holds firm, the trend remains bullish, and the risk-reward ratio for going long on pullbacks is higher. $ETH