Ethereum reveals a critical line for longs and shorts! Latest market insights exposed on August 28! The truth behind last night's crash surprisingly lies in these three lines.
Today, this ETH market has some substance; last night's plunge was not accidental, but rather the result of a dual strike from news and technical factors!
News: Policy whispers + market sentiment
Last night, news suddenly broke that the US SEC was tightening its scrutiny on crypto ETFs. Although there was no solid evidence later, the market panicked immediately. Large funds fear uncertainty the most, and ETH, being one of the leaders, was hit hardest. Additionally, with the recent rise in expectations for the Federal Reserve to raise interest rates, the entire risk asset market became timid, and the crypto market naturally couldn't escape.
Technical: Key levels broken, triggering a chain of sell-offs
Look at this 1-hour candlestick chart:
**Red resistance line**: Last night, it surged to this position only to be knocked down; bulls simply couldn't hold on.
**Yellow key level** at 4500: This is the dividing line between longs and shorts! Once it fell below last night, it instantly triggered programmatic selling, with increased volume causing panic selling to flood in.
**Green support line**: The specific value is not shown in the chart, but it's close to 4490: It held up in the short term, but the rebound strength is too weak, and the price is still hovering around 4500.
**Key Point**: Technicians are all watching the 4500 level. If it holds, there’s a chance to breathe; if it breaks, the next stop could be straight to 4400!
My personal opinion
**Short Term**: Don’t rush to buy the dip! The rebound lacks volume, resistance levels are moving down, and short-term rebounds are just opportunities for escape.
**Long Term**: The fundamental aspect of ETH hasn't collapsed, and the ecosystem is still running; ETF funds haven’t seen large-scale outflows yet, but if macro policies remain unstable, it's highly likely that sharks will continue to wash the market using news.
**Operational Advice**: Retail investors shouldn't hold positions; set stop-loss orders! If you really want to bet on a rebound, wait until it stabilizes above 4550 before considering; otherwise, just watch the show.
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