Brothers, Old Li is here! Recently, our 'old chives' eyes haven't been in vain; we lit the way for everyone in this wave of ETH. In terms of trend prediction, Old Li's signature is still solid! The current market situation has reached a crucial juncture—4200 USD, which is not an ordinary round number; it’s the frontline where both bulls and bears are sharpening their knives and revealing their true strength!
Why is 4200 so eye-catching?
Psychological Barrier: Round numbers are naturally battlegrounds and indicators of market sentiment. If it holds, morale will soar, aiming higher; if it cannot hold, it will create panic, and profit-taking or stop-loss orders may flood out.
Technical Fortress: Let's open the candlestick chart and take a good look (brothers, pay attention to the chart!). Around 4200, there have been several previous highs and pullbacks, forming a dense trading area. The trapped positions and profit-taking orders are piled up here, creating significant pressure. At the same time, the short-term key support lines (like that important EMA or the rising trend line) are also converging here; if it holds, it will be a 'golden fortress' technically; if it cannot hold, a short-term adjustment is inevitable.
Bull-Bear Touchstone: How far can this rebound go? Is it a true bull rally or a large-scale rebound? The battle at 4200 can provide key clues. A strong breakthrough and stabilization indicate that the bull's main forces are truly charging in; if it fails after prolonged attack or is a false breakout, we need to be wary of short-term risks.
What does Old Li think about this 'defensive battle'?
Bulls Have 'Cards' to Play: In the big trend, ETH's fundamentals are sound, the ecosystem remains active, and the upgrade narrative (like the upcoming Dencun updates) is still ongoing. Looking at the technical side, as long as the volume cooperates and the MACD doesn't show a severe death cross, maintaining a few key support levels (like 4150 and 4100) while relying on 4200 to organize a counterattack has a good chance of standing firm and even preparing for an upward attack. If outside funds see it holding, they may come in to lift it up.
Bears Lurking: Don't be too optimistic! There is heavy pressure above, and profit-taking may strike at any time. If there are slight fluctuations in external environments (US stocks, Bitcoin's performance, regulatory news), they could provide bears with a reason to act. Key is looking at volume! If it breaks below 4200 with significant volume, the depth of short-term correction may be large, and we must guard against a dip to 4000 or even lower. The recent 'corpses' from leveraged liquidations haven't cooled yet, so beware of a bear counterattack!
Old Li's 'secret weapon' for the brothers:
Keep a Close Eye on Volume: Breaking or holding 4200 must come with increased volume! Rising without volume is just trickery, and falling without volume could be a trap (but still be cautious).
Watch for Correlation Effects: Bitcoin (BTC) is the leader; if it cannot stabilize, ETH will struggle to stand alone. If it can stabilize or even rise, ETH will have the confidence to charge forward.
Key Support/Resistance: 4200 is the core, but 4150 and 4100 below, and 4250 and 4300 above are all important observation points. If support is broken, we need to be cautious; if resistance is broken (especially with volume), we can look for higher levels.
Control Your Hands, Manage Your Positions: At such a critical position, volatility is bound to increase! Don't easily go all in, and don't blindly chase highs and lows. Position management is a lifesaver! Short-term experts can trade small positions with high selling and low buying; steady traders might as well wait for clear direction before acting.
This battle at 4200 is a watershed for ETH's short-term strength! Old Li has predicted the trend, now we just watch this 'defensive battle'. If the bulls can firmly plant their red flag on the battlements, the future looks promising; if they cannot hold, we must prepare risk control for better positions. The crypto market is like a battlefield, ever-changing; we must be bold but also meticulous!
