From a purely technical analysis perspective, ETH standing above 2580 in the evening does not fully confirm that this pullback has ended, and here is a detailed analysis:
Technical analysis aspects
- Significance of breaking key resistance: Above 2580 is a key resistance area. If ETH can effectively stay above 2580, it indeed releases a certain positive signal in the short term, indicating that there is some rebound potential and upward momentum in the market. Previously, this level had a certain suppressive effect on the price, and breaking through it means that bullish strength is increasing.
- Confirmation requirements for the breakout: To determine if the pullback has ended, attention must also be paid to the validity of the breakout. If it only briefly stays above 2580 without a significant increase in trading volume, it may just be a technical rebound rather than a trend reversal. Only when the price stays above 2580 and can maintain stability at that level, along with an increase in trading volume, is it more likely to signal the end of the pullback.
- Coordination with other technical indicators: In addition to the price breaking through resistance, other technical indicators need to be combined for a comprehensive judgment. For example, if the Relative Strength Index (RSI) is in the overbought territory, then even if the price breaks through 2580, it may still face pullback pressure; conversely, if the Stochastic RSI shows bullish divergence and the MACD indicator also forms a bullish crossover above the zero line, it will increase the likelihood of the pullback ending.
Market sentiment and capital aspects
- Shift in market sentiment: If the overall market sentiment shifts from pessimistic to optimistic, and investor expectations for ETH improve, even if the price does not break through 2580, the pullback may end prematurely. Conversely, if market sentiment remains sluggish, even if the price breaks through 2580, it may only be a short-term rebound.
- Capital inflow situation: If institutional investors start buying ETH in large quantities, or if market funds are generally flowing into the cryptocurrency market, it will provide strong support for ETH prices and help end the pullback. Conversely, if funds are flowing out, even if the price breaks through 2580, it may decline again.
Macroeconomic and policy aspects
- Impact of the macroeconomic situation: The macroeconomic situation also has an important impact on the cryptocurrency market. If macroeconomic data improves and market risk appetite rises, the cryptocurrency market may rise overall, and the pullback of ETH may also end. Conversely, if the economic situation is poor and market panic spreads, ETH prices may continue to decline.
- Changes in regulatory policies: Changes in regulatory policies have a huge impact on the cryptocurrency market. If regulatory policies are relaxed, the legitimacy and stability of the cryptocurrency market will be enhanced, investor confidence will increase, and ETH prices are expected to rise, ending the pullback. Conversely, if regulatory policies are strengthened, the cryptocurrency market may face pressure, and ETH prices may continue to pull back.
