ETH rising above $1800 does not necessarily mean that the reversal signal has been fully confirmed, but it is an important signal that needs to be combined with other factors for a comprehensive judgment. Here is a specific analysis:

From a technical analysis perspective

• Resistance Level Breakthrough: $1800 is one of the key resistance levels for ETH. If it can effectively break through and maintain a position above this price, it will break the previous downtrend and form a short-term bottom reversal signal. For example, after ETH broke below $1800, market sentiment was bearish, while breaking through this level may change market expectations.

• Indicator Coordination: Currently, the Relative Strength Index (RSI) of ETH has rebounded from the oversold area. If ETH rises above $1800 and the RSI simultaneously enters the overbought area (generally considered overbought when RSI is greater than 70), then the reversal signal is more reliable.

From the perspective of market sentiment and capital flow

• Panic Sentiment Easing: Previously, market sentiment for ETH was quite pessimistic, with many investors in a wait-and-see or selling state. When ETH rises above $1800, it may trigger some investors to refocus and buy, thereby pushing the price further up.

• Capital Inflow: If institutional investors and large funds start to flow into the ETH market, it will provide strong support for price increases. For example, reports indicate that there are a large number of buy orders near $1800, which may be a precursor to a reversal signal.

From the perspective of long-term trends and fundamentals

• Long-term Trend Line: After ETH rises above $1800, if it can further break through the resistance level of $2000 and other long-term trend lines, the possibility of a reversal is greater.

• Ecological Development: The ecological applications of Ethereum continue to develop, such as the growing demand in decentralized finance (DeFi) and non-fungible tokens (NFT) fields, which will provide long-term support for ETH, thereby increasing the reliability of reversal signals.

Risks to be aware of

• Pullback Risk: Even if ETH rises above $1800, the price may still fluctuate at high levels or even experience a pullback. For example, recently ETH showed a brief pullback during its upward movement, and investors should act cautiously.

• Macroeconomic Factors: The global economic situation and monetary policy have a significant impact on ETH prices. If global liquidity tightens or U.S. Treasury yields rise again, it may put pressure on the ETH market.