The market in the cryptocurrency world is always like an adventure full of unknowns, and today's ETH trend undoubtedly brings the 'excitement' of this adventure to its peak.
Last night at 8:30, the US PPI data exceeded expectations, while unemployment claims data also brought bad news, as if a 'bearish bomb' was dropped on the market. Instantly, bearish forces surged, reflected in the 1-hour K-line chart of ETH, where the price plummeted with a loud 'bang', making many investors feel anxious.
However, the cryptocurrency market is never short of reversal drama.
Today, news that 'a large institution quietly increased its holdings of ETH' spread like wildfire, acting like a shot of adrenaline, instantly activating bullish forces. Then, a miraculous scene occurred: the ETH price stopped falling and began to rise slowly, with trading volume also increasing simultaneously, clearly indicating that many funds were moving in, taking the opportunity to enter the market. I have an 'old investor' friend who, after seeing the bad news yesterday, panicked and sold some ETH. As a result, when he looked today and saw the price rebound, he slapped his thigh in regret, hurriedly buying back what he had sold, exclaiming to me, 'The cryptocurrency world really rewards the bold and starves the timid!'
From a technical perspective, ETH is currently facing a critical resistance level of 4800.
This position is like a stronghold that is difficult to conquer. Previously, bulls attempted to launch attacks several times but failed to establish a foothold. However, today's situation seems a bit different, as the price surged rapidly after breaking through the key support level of 4610, marching towards 4800.
In my opinion, the bulls' performance today is indeed commendable, but whether they can truly capture the high ground of 4800 remains a question mark. On one hand, the resistance level of 4800 itself is quite strong, with previous attempts ending in failure. If the bulls want to break through, they need more capital infusion and a stronger market confidence. On the other hand, the market news cannot be ignored; whether subsequent economic data from the US will change or if new policies will affect market sentiment are all potential uncertainties.
Looking at the technical indicators, the MACD indicator shows that the fast line has crossed above the slow line, forming a golden cross, which is a positive signal for the bullish trend in the short term. However, whether the trading volume can keep up is also a key issue. If the trading volume is insufficient afterwards, even if the price temporarily reaches 4800, it may struggle to hold that level and could very likely be pushed back by bearish forces again.
That said, if ETH can effectively break through 4800 today and firmly hold that level, the subsequent upward potential will be opened up, likely launching an attack towards even higher prices. But if it fails to break through and falls back below 4610, ETH may face another wave of adjustment, possibly testing the support level of 4450.
The cryptocurrency market is ever-changing, and every fluctuation affects countless investors' hearts.
