Ethereum has significantly outperformed Bitcoin, breaking through $4300 during intraday trading on August 11, reaching a new high for the year, before retreating to around $4230 and oscillating. Excluding yesterday's small bearish candle, the daily chart has shown a series of large bullish candles, with the RSI indicator continuously operating in the overbought range (above 75), indicating that bulls dominate the market. However, the divergence between price and volume (price reaching new highs while volume decreases) suggests increased short-term pullback pressure. Key resistance levels to watch are $4330-$4350 and $4400; a breakout could open up upward space. Key support levels are $4160 and $4230.

Long position operation range suggestion: If the price pulls back to the $4200-$4250 range, a light long position can be attempted, with an upper target of $4330-$4350 and a stop loss at $4180.

Short position operation range suggestion: If the price fails to form an effective breakout at $4330-$4350, a light short position can be attempted, with a lower target of $4280-$4260 and a stop loss at $4380.

The competition between long and short positions in Ethereum is intense, with $4330 being a key watershed. Prior to a breakout, the focus should be on short positions, and support levels around $4160-$4230 can be considered for buying on dips.