First, look at the 'truth of K line fluctuations': the battle between bulls and bears is too fierce within 4 hours!
Starting at 16:00 on August 27, 2025, the price of ETH experienced a 'sharp drop' — within just 4 hours, it broke through the previous low point of 20:00 that day (4376.18), dropping more than 3% compared to the price at 4:00 AM! The chart directly pulled out a 'large bearish candle with an entity exceeding 150 points', with bearish momentum reaching its peak.
But the key turning point came at the last K line: just when the decline was about to bottom out, the price suddenly stopped falling and rebounded, ultimately closing with a 'small bullish candle' (the closing price is steadily higher than the opening price), which is equivalent to 'bears smashing the market while bulls quietly enter to support', but the rebound strength is still weak and has not yet broken the downtrend.
Second, the volume reveals a big problem: the market is 'colder than expected'!
Compared to the rise and fall of K lines, the trading volume in the last 4 hours is more concerning:
Compared to the previous 4 hours, the trading volume has shrunk directly by over 35% (the average trading volume of a single K line in the previous hours was 1.2 million pieces, now it is only around 800,000 pieces);
A typical 'decline in both volume and price' — price drops, and trading volume also drops, indicating two points: ① The selling pressure from bears has weakened, but ② Bulls do not dare to 'buy the dip', the market is trapped in a 'wait-and-see deadlock'. In such a quiet market, volatility may become more extreme (either a sudden rebound or a drop to break support).
Third, technical indicators 'plain breakdown': do not overlook these signals!
MACD: Bullish momentum is quickly 'depleting'.
Currently, the MACD does not show a clear bullish or bearish trend, but the histogram has been 'narrowing' (from the previous wide red bars, slowly getting shorter) — in simple terms, 'the strength of the previous small rebound is fading', and now the bulls and bears are basically even, it will depend on who breaks the balance first.
KDJ: After severe overbought, it has 'stalled', beware of unusual movements.
The KDJ value reached 102 (normal overbought is above 80), which is considered 'severely overbought', but there hasn’t been a significant pullback after the overbought condition, instead, it has been oscillating at a low level — this is not a good sign! Combined with the divergence between volume and price (price drops but volume doesn't increase), it will either 'drop to break support' or 'suddenly rebound to correct the overbought', newcomers should not easily chase orders.
Fourth, key points for BOSS Wallet: how to apply it in practice? Suggestions for different groups!
First, clarify the core data:
Different operational suggestions for different groups:
For novice traders: do not engage in left-side low buying! Wait for 'clear signals' — either the price stabilizes above the resistance level of 4765 (confirming a rebound), or it drops below the support level of 4349 (confirming a downward trend), then enter with small positions, and set stop losses (for example, for long positions set at 4354.3, for short positions at 4837.11), don’t hold positions!
For experienced players (who can withstand small fluctuations): If you want to buy low, accumulate in batches in the 4358-4314 range, with each position not exceeding 5%. If it drops below 4354.3, cut immediately; if you want to short, try small positions when it rebounds to the 4700-4765 range, and set a stop loss if it breaks 4837.11, don't be greedy.
For holders: If your current holding cost is around 4500, set a stop loss at 4354 (to avoid deep losses), and if it rebounds above 4700, reduce your position by half, taking profits first before considering further actions; the current market is not suitable for 'full position betting on direction'.
Fifth, a final reminder: currently the two risks that should be noted!
Support level 4349 is the 'line of life and death': once it breaks with increased volume, the next support is 4314, and it may even test below 4300. Don't harbor the illusion of 'buying the bottom at the lowest point';
Do not chase rebounds before volume expands: although the last small bullish candle stopped the decline, the trading volume did not follow, which may be a 'false rebound', easily getting stuck halfway up.
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