Bottom fishing or catching knives, key point $ETH exposes the true intentions of the main force
ETH today's market analysis: shrinking volume and declining trend concealing potential risks?
ETH's half-hour K-line fluctuated violently today, opening at $1780 before plummeting to $1400, with multiple rebounds suppressed along the way.
The price briefly surged from $1602 to $1650 before quickly retreating to $1400, with frequent needle-like patterns reflecting intensified market divergence.
Combining today's news, foreign media reports that regulatory agencies in multiple countries are exploring strengthened compliance reviews for DeFi, with some large holders preemptively selling ETH for hedging, leading to continuous accumulation of selling pressure.
The trading volume dropped from 12 million (1200M) in the morning session to 2.86 million (286M) at the end of the session, with even a low volume of 2 million (2M) occurring in between.
This shrinking volume and declining trend indicate a lack of incremental funds in the market, relying solely on existing stock games to maintain, with prices trapped around $1400, and both bulls and bears adopting a wait-and-see attitude.
Core viewpoint: Key levels determine short-term direction
If ETH fails to break through $1600 with increased volume tonight, short-term downward pressure will intensify. $1400 serves as a psychological support level, and if it is lost, it may quickly dive into the $1300-$1200 range. Current market sentiment is sensitive, and short-term rebounds should beware of false bullish traps; blindly bottom fishing carries a high risk.
Strategy suggestion: Act by remaining still
Before the uncertainty of regulation is resolved and volume shows clear recovery, it is recommended to maintain a wait-and-see stance. The real bottom needs to be accompanied by panic-driven volume or signals of main fund involvement, rather than shrinking fluctuations. If ETH stabilizes above $1600, it can be seen as a sign of stabilization; if it continues to consolidate with shrinking volume, further pullbacks should be guarded against.
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