The rebound opportunity and key watershed game strategy after Ethereum's sharp decline

Core logic and the inevitability of the rebound

• Correction demand after a sharp decline: having dropped significantly, there is rebound momentum—if it holds at $3366 on the 4-hour chart, the short-term rebound probability is high; reclaiming $3458 on the hourly chart is key, if stable, it is expected to see $3524, this position is an important watershed, moving above it will continue the upward trend, otherwise, it will continue to oscillate.

• The boundaries of range game: the upper pressure levels of $3478-$3518-$3560 are clear, while the lower support levels of $3399-$3369-$3310 are definite; breaking above or below these boundaries will guide the short-term direction.

Key point trading strategy

• Long conditions:

1. Breakout above $3450 with volume → chase long on the right side, target $3478→$3518, recover stop loss;

2. Test support at $3369 → lightly position long, stop loss below $3339;

3. Stabilize above $3478 → increase long positions, targeting $3560, must break through $3524 watershed in conjunction;

4. Left-side long position at $3308, stop loss below $3264 (buying the dip after a deep decline, requires a stop-loss signal).

• Short conditions:

1. Breakdown below $3433 with volume → chase short on the right side, target $3399→$3369, unable to recover stop loss after a pullback;

2. Lightly position short at $3518, stop loss above $3560 (testing resistance, requires confirmation of weak rebound);

3. Breakdown below $3366 on the 4-hour chart → increase short positions, targeting $3271, continuation of the downward trend after support breaks.

Watershed and the sustainability of the rebound

• The significance of $3524:

◦ It is both an important position from earlier and the key threshold for the current rebound; moving above it breaks the oscillation deadlock and targets higher pressure; failing to do so limits the rebound and returns to range oscillation.

• Rhythm of rebound operations:

◦ A sharp decline rebound requires accompanying volume, stabilizing at $3458 is fundamental, avoid chasing high too early, wait for confirmation of key level breakout before increasing positions.

Summary: Ethereum's short-term focus is on sharp rebound and watershed breakout; core operation: follow long positions relying on the breakout at $3450, closely monitor short positions at $3433, $3524 is the touchstone for the rebound quality, do not blindly chase highs or sell lows.