Breaking news! Ethereum's wild fluctuations last night: is it a prelude to wealth or a sign of collapse?
'The crypto world is like a tumultuous sea, every wave of market movement is a hidden opportunity for wealth. If you catch it, you can ride the waves; if not, you can only be washed ashore.' Last night, Ethereum's market action was like a roller coaster, raising the hearts of countless crypto friends to their throats. From a surge to around 3870 at 9 PM, everyone thought it would break the key resistance level and start a new round of soaring. Instead, it crashed directly to 3710 at 12:30, scaring many into cutting losses. But who would have thought that within 5 minutes, it violently rebounded to 3750, then swung between 3750 - 3800? Was this operation a washout by the main force, or a final struggle before a crash?
Last night's market revelation: the 'life-and-death struggle' between the 3870 resistance level and the 3750 support level
1. Why has 3870 become Ethereum's 'stumbling block'?
Last night at 9 PM, Ethereum suddenly surged to 3870, which is not a simple position. It's like the 'gate of hell' in the crypto world. When the bull market peaks in April 2024, this will be the place where major institutions offload, filled with sell orders. Moreover, from a technical indicator perspective, the 50-day moving average has crossed below the 200-day moving average, forming a 'death cross', which is a typical bearish signal. The MACD histogram continues to shorten below the zero line, indicating that bullish momentum is weakening.
Take my friend Lao Zhang as an example. He saw Ethereum rise and thought the opportunity had come, so he quickly went all in. What happened? The price just reached around 3870 before turning down, and his position got trapped, resulting in heavy losses. This is a typical case of being 'baited and dumped' by the main force, who first drives the price up to attract retail investors, then turns around and crashes the market, trapping the retail investors at high levels.
2. The 3750 support level: is it a 'golden pit' or a 'bottomless pit'?
At 12:30, Ethereum dropped to 3710 and quickly rebounded to 3750. This support level acted like a 'moat', temporarily halting the bears' attack. 3750 is the last 'lifeline' for the bulls this week, gathering substantial bottom-fishing funds and stop-loss orders. If this position cannot hold, the price may plunge like a flood after a dam break, dropping to 3600 or even lower.
However, based on trading volume, the volume did not increase during the crash, indicating that the main force did not exit but used a 'false breakout' to wash out retail investors. The volume increased moderately during the rebound, suggesting that bulls are quietly accumulating. Just like last year when Bitcoin was consolidating around $30,000, it first crashed to wash out, then suddenly launched, starting a big market movement. Therefore, the 3750 support level is crucial; if it can hold today, there may be further upside opportunities.
Today's market trend prediction: Is the 3750 - 3800 consolidation the 'calm before the storm'?
1. Key resistance level: 3800 - 3820, a breakthrough will mean 'soaring skyward'
Currently, Ethereum is stuck in the 3750 - 3800 range, with the upper 3800 - 3820 being a 'heavily guarded area'. Not only is there resistance from this week's highs, but there's also pressure from Fibonacci retracement levels. If today it can break through 3820 with volume, the price might soar like a runaway horse towards 4000 or even challenge the historical resistance level of 4089.
Just like Bitcoin's rise from $10,000 to over $60,000 in 2020. Many thought the price was too high and dared not chase it, missing out on the big market. So if Ethereum can break 3820, seize the opportunity and don't let wealth slip through your fingers.
2. Key support level: 3750, breaking it will lead to 'blood flowing like a river'
If the price falls below 3750 today, the only support levels below are 3680 and 3600. If it breaks below 3600, it could trigger a 'long squeeze', driving the price straight to 3400. Just like Bitcoin's plunge from $20,000 to over $3,000 in 2018, many lost heavily after buying at high levels. Therefore, everyone must closely monitor the 3750 support level, and if it breaks, take timely stop-loss actions to avoid larger losses.
3. News catalyst: Is tonight's Federal Reserve meeting 'bullish' or 'bearish'?
Tonight, the Federal Reserve will announce its interest rate decision, with the market generally expecting a 25 basis point rate cut. If the rate cut is implemented, Ethereum may break through 3820, initiating a new bull market. Because a rate cut means more money in the market, which will flow into risk assets, benefiting the cryptocurrency market.
But if the Federal Reserve 'doves', signaling no rate cuts in the future, or even potential rate hikes, the price could plummet to 3600. Just like when the Federal Reserve raised rates in 2022, Bitcoin fell from over $60,000 to around $15,000, leaving many investors with substantial losses. Therefore, tonight's Federal Reserve interest rate meeting is like a 'ticking time bomb', and everyone must treat it with caution.
Personal opinion: Ethereum is in a short-term consolidation, but there are still opportunities in the medium to long term.
From the current situation, Ethereum is in a short-term consolidation, with both bulls and bears in a stalemate. However, from a fundamental perspective, Ethereum's ecosystem is becoming increasingly robust, with developments in DeFi, NFTs, and other areas providing support. Moreover, as blockchain technology continues to advance, the application scenarios for Ethereum will become more extensive, and in the long run, there is still room for price increases.
However, everyone should also be aware of the risks. The crypto market is unpredictable, and any news could trigger drastic price fluctuations. Therefore, when trading, it's essential to manage positions well, set stop-loss and take-profit levels, and avoid blindly chasing highs or cutting losses.
Follow the strategy closely to seize tonight's key moment and let's 'earn with laughter' together!
Now, everyone's attention is focused on tonight's Federal Reserve interest rate meeting. This will be a crucial juncture for Ethereum's short-term trend. If you don't want to miss this market movement and want to make money in the crypto world, hurry up and follow me. I will release the 'final operation strategy' one hour before the meeting to help you accurately capture this wave of opportunity.
Remember: In the crypto world, information is wealth; opportunities are fleeting! What are you waiting for? Act quickly, and let's ride the waves together in the crypto world to achieve great wealth!
