ETH Market Interpretation: Rebound Fails, Downward Trend Continues

Yesterday's rebound in ETH brought a glimmer of hope to the market, but ultimately the price did not break through the key resistance range of 4560-4600. From the perspective of the Chande theory, this indicates that the current reversal attempt has failed, and the market continues to operate within a larger downward center, without forming an effective upward trend. In other words, yesterday's surge resembled a corrective rebound during a downward process, rather than a true turning point in the trend.

Structurally, since mid-August, the downward rhythm of ETH has been relatively clear: the previous divergence has released energy once near 4300, but the subsequent rebound was insufficient, and the price failed to effectively escape the constraints of the center, instead encountering resistance at the pressure level again, which reinforced the continuity of the downward trend. From the market performance, the bears still hold the initiative, while the bulls' counterattack has not broken the overall pattern.

From an operational perspective, the current market signals are quite clear: the 4520-4550 range is a relatively ideal point for short positions. If the market encounters resistance in this area and moves downward, the mid-term target is expected to continue to probe below 4300. Of course, trend trading always requires strict risk control, so it is recommended to set a stop-loss around 4570 to avoid excessive losses due to sudden market reversals.

It is important to note that ETH's recent volatility has relatively increased, and market sentiment is also quite sensitive, short-term trends may be accompanied by repeated fluctuations. However, overall, as long as the price does not truly break through 4600 and stabilize above, the main tone of decline is difficult to change. For medium to long-term investors, patiently waiting for a deeper correction range may be more cost-effective than blindly chasing up.

In summary, the failure of the rebound and the continuation of the trend are the current core logic for ETH. In the short term, focus on short opportunities in the 4520-4550 range, with a mid-term target looking towards below 4300, and strict stop-loss set at 4570. Once the market shows new structural signals, we will adjust our strategy accordingly.