A volatile market is like being in a relationship—if there's no breakthrough, it’s just ambiguity; only after a breakthrough is it true love!
ETH is currently fluctuating between 4306-4410, with the upper Bollinger band pressing down and key support at 4306 holding it up. The price hovers around 4336, like lettuce caught in a hamburger—afraid to rise sharply or fall sharply, but the bulls have gained a slight advantage.
Key positions are closely monitored, breaking levels determine direction
4410 (near the upper Bollinger band): a short-term 'ceiling.' If it can break out with volume, ETH might surge directly to 4500+, even challenging the previous high of 4794.
4306 (key support): this is the 'lifeline' for the bulls; if it breaks, market sentiment may turn bearish, and the price could slide towards the strong support area of 4050.
4336 (current price): neither up nor down, short-term traders are waiting for BTC to lead the way, after all, when Bitcoin moves, altcoins follow suit.
Latest news impact:
U.S. crypto hearing (August 22): the market is waiting for regulatory signals; if there's good news (like further progress on ETFs), ETH might break out; if there's bad news, the 4306 support might not hold.
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ETH ecosystem dynamics: the Layer 2 sector is active recently, but there are no major positive developments today, and the market is cautious.
2. Indicator signal interpretation: there are signs of an upward trend, but don't be too optimistic.
MACD yellow and white lines have just crossed above the zero axis:
Like a child just learning to walk, swaying back and forth, the shortening of the red column indicates that the bears are temporarily holding back, but a strong golden cross has not yet formed, so don't rush to shout 'the bull market is back.'
Bollinger Bands narrowing (4411-4140):
A typical 'calm before the storm,' with prices oscillating near the middle track, the signals for a shift are getting stronger, and a breakout could happen at any time.
Shrinking trading volume (13,000 ETH):
Like the gas pedal in a traffic jam—pressing it doesn't help, indicating that large funds have yet to enter the market; right now, it's all retail investors, true market action will come with increased volume.
ETH is like a 'spring'—the longer it's compressed, the stronger the rebound. But the question is—where will it bounce?
Case reference: At the beginning of August, ETH was also stuck around 4000, later breaking through 4400 thanks to BTC's rise. Will history repeat itself this time? The key lies in tonight's U.S. stock market opening and regulatory news.
3. Operation strategy: short-term play is possible, wait for a breakout for stability.
Short-term traders: as long as 4306 holds, a small position for a rebound can target 4410; in and out quickly; stop loss if it breaks below 4306.
Swing traders: wait for a volume breakout above 4410 to chase, or short if it breaks below 4250; don’t rush to bet on the direction now.
Long-term coin hoarders: a volatile market is suitable for dollar-cost averaging, but don't go all in at once; wait for clearer trend signals.
ETH is now like a snake pinched at the seven inches—both up and down are difficult! The key is to see which breaks first: 4306 or 4410.
Tonight's U.S. stock market opening + the pre-hearing skirmish could ignite the market. Are you ready to bottom fish or waiting for a breakout? Let's discuss in the comments section!
