{ETH Market Analysis} Key Level at $3704, Direction About to be Selected!
Recently, the cryptocurrency market has continued to fluctuate, and the performance of Ethereum (ETH) has attracted much attention!
The current price is hovering around $3704, which is a critical area for determining the next direction.
Technical Analysis: A Crucial Moment for Bull and Bear Struggles
1·Support Area
The lower range of $3550-$3600 is an important support zone recently, where buying pressure has repeatedly emerged. If it effectively breaks down, there is a possibility of a pullback to $3400.
2·Resistance Area
The upper range of $3780-$3820 is a strong resistance level in the short term, which has been tested multiple times without success. Once a breakout with volume occurs, it is expected to open an upward channel, targeting the $3950-$4000 range.
3·Volume and Rhythm
The trading volume has slightly declined in the past two days, and market sentiment is cautious, indicating that bulls and bears are still in a tug-of-war. If the volume supports a breakout, a clearer short-term trend will emerge.
4·Market Sentiment: Institutions are Cautious, Retail Investors are Watching
The current ETH trend is like a spring compressed to its limit:
Positive Factors: The Federal Reserve is sending dovish signals, and risk assets are generally strong; Ethereum's spot ETF continues to attract institutional accumulation, and the on-chain staking rate is steadily increasing.
Risk Factors: Overall market volume is insufficient, and short-term funds are still inclined to quick in-and-out trades; the altcoin market is sluggish, with scattered hotspots, making ETH vulnerable to fluctuations when it stands alone.
In a nutshell: ETH's short-term trend depends on whether it can effectively break through the $3820 resistance zone.
Operational Thoughts Reference
Conservative Approach
Wait for a breakout and stabilization above $3820 before considering to follow the trend.
Aggressive Approach
Small positions can be accumulated in the $3550-$3600 support area, with a stop-loss set below $3480.
Position Management
During the consolidation period, heavy positions are not advisable; flexible light positions should be rolled over, leaving sufficient safety margins.
Currently, $3704 is a key observation point, and a breakout or pullback will lead to a directional choice.
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