Under the Ethereum ETF cash influx frenzy, the ETH price is caught in a critical game: two key support levels determine life and death

Last week, the Ethereum ETF experienced explosive market activity, with a single-week inflow of $2.85 billion directly crushing the Bitcoin ETF, making institutions' optimistic attitude towards ETH clear. Behind this is the market's strong expectation for the subsequent development of ecosystems like DeFi and Layer 2, with funds voting with their feet to bet on the accelerated takeoff of the ETH ecosystem.

However, paradoxically, the enthusiastic fund inflow has not driven the ETH price to strengthen simultaneously, with the current price stuck at the critical level of $4,270, the trend is precarious. The gains and losses at this position are crucial:

• If the $4,270 support fails, short-sellers are likely to take advantage of the situation, with the next key test being the psychological level of $4,000;

• A short-term pullback to $4,000 may not be a bad thing—previously, ETH's rise was too rapid, and a moderate washout can digest profit-taking, making the market more stable.

However, $4,000 is a “bottom-line” support with two key judgment points:

1. A brief moment of dipping below is allowed, but it must not close below $4,000 on a daily basis; otherwise, the trend may shift from strong to weak;

2. The most ideal scenario is to see a “long lower shadow”—pretending to break down and then quickly pulling back, which can clear out panic sellers and blow up short positions.

Currently, there is a hidden signal in the market: the ETH/BTC exchange rate has fallen to a critical support level, and quantitative funds are clustering to short. Once the support holds, the rebound strength may exceed expectations.

Lastly, some operational advice for different investors:

• Short-term players: Keep a close eye on $4,270, and after a break, wait for low buy opportunities around $4,000, avoid blindly chasing highs and selling lows;

• Long-term players: You can gradually position during pullbacks, but remember that $3,800 is the final defense line; if it breaks, decisive stop-loss actions are needed.

The market is never short of opportunities; what it lacks is the rational patience to maintain during fluctuations. The game around the current key support level will determine ETH's next direction. $ETH #币安HODLer空投PLUME #加密市场回调 #山寨季何时到来？

If you are feeling confused and have incurred losses due to the recent drop, feel free to consult a teacher for a comprehensive analysis.

Keep an eye on: ETH, BTC, SOL, LINK, UNL, BCH, LTC