Market Analysis:

Viewpoint: Ethereum Pullback Continues to Favor Long Positions

1. In the 1-hour candlestick chart, the price has formed a candlestick with a significant long upper shadow, accompanied by large trading volume. Although the price surged quickly during the day, it ultimately failed to maintain a high position and instead fell sharply, resulting in a long upper shadow.

This phenomenon indicates that the market encountered resistance during the upward movement, with a large number of positions choosing to take profits at this price level. In this case, the price is likely to enter a pullback phase in the short term, and it is not advisable to blindly chase the rise; instead, one should be cautious of the potential downside risks in the market.

2. Intraday support is at the 2580 region, and this position should be monitored for support during the day. If the price pulls back to this level, first observe whether there are clear signs of a stop-loss (long lower shadow, stabilization of bullish candlesticks after a decline in volume). This is considered a potential entry opportunity for long positions.

a. It is important to note that if the price breaks below the 2580 support with increased volume, abandon the long position!

b. Confirmation signal: Avoid entering based solely on the price touching support; wait for a solid candlestick confirmation of a bullish reversal.