ETH price is oscillating at a high level, where is the key area for the battle between bulls and bears?

In the past two days, ETH has shown a significant rebound. Behind this wave of market movement is a phase of rebound formed after a large-scale clearing of short positions.

It can be clearly seen from the chart that when the price started in the range of 3260–3350, there was a dense clearing mark (yellow-green stripes) in that area, indicating that a large number of accounts that opened short positions at lower levels were forced to close. As the price continues to rise, the clearing area follows up, indicating that under the push of bulls, short stop-loss orders are constantly triggered, forming a cascading effect.

This pattern of clearing driving the price up usually means that the market is moving rapidly in a short time, and participants' emotions have quickly shifted from wait-and-see to FOMO.

After the price touched around 3600 on the morning of August 4th, it began to enter a sideways phase. From the heat map, there are also certain clearing traces in the high range (3500–3570), indicating that short-term chasing bulls encountered a counterattack during the price correction. Major funds may be using the oscillating structure to wash out floating positions, preparing for the next direction choice.

The current price is oscillating between 3550–3600 USDT, with narrowing fluctuations, indicating that the market is waiting for the next opportunity for momentum to explode.

From the order depth chart on the right:

Resistance above: There is significant selling pressure in the range of 3600–3700. If the price wants to continue to attack, it needs to break through with increased volume and further trigger a wave of short position closures.

Support below: There are a large number of buy orders in the range of 3400–3450, which is a key support area in the short term. If the price falls, this area is expected to provide a technical defense line.

The overall order distribution is relatively neutral, indicating that the market is still in a state of bull-bear game.

Overall, ETH is currently in a consolidation phase after a rapid rise. The clearing heat map reflects the surrender of shorts and the short-term exit of some chasing bulls. Currently, the market lacks new points of liquidation to drive the price, so the next directional choice needs to pay attention to whether there is new capital inflow or sudden news to accompany it.