The recent movement of Ethereum is quite interesting.
It dropped from 4350 all the way down to 4190, which was quite destructive, and many long positions that chased the highs were directly washed out during this period. However, it quickly rebounded back to around 4230, indicating that the buying support below is still strong, and the positions have not really loosened.
Support below: 4190-4200 range. If it breaks again, it may short-term revisit 4150 or even 4100.
Resistance above: 4250-4280 range, which is a previous area of heavy long position entrapment, making it difficult to break through.
High probability rhythm:
In the short term, it will likely move sideways around 4230 to gather strength, as the market needs time to digest the panic selling after the drop. If it can stabilize above 4200, there is still hope to challenge 4250-4280 again. If it breaks below 4200, that would signal a second bottoming adjustment.
Conservative approach: Don't rush to go all in; first, observe whether 4200 can hold. If 4200 holds, you can gradually try going long, targeting first for 4250-4280.
Aggressive approach: You can take a light position in long orders around 4220-4230, with a strict stop-loss below 4190, and increase the position once it stabilizes above 4250.
Bearish thought: If it rebounds to the 4280 resistance level and does not break through, you may consider a short position to bet on a pullback to 4200.
The market has significant long and short divergences, so it's important to manage positions well in the short term, avoiding going all in and following the trend is key to making a profit.
