The new month begins, and for ETH bulls, it is crucial to see if they can complete an impact above 4000 this month.
From the perspective of exchange rate strength and weakness, ETH bulls, after a period of strength, have begun to follow the market's weak consolidation and continue to show relatively weak performance at high levels. There is a potential expectation of a short-term pullback. The speed and intensity of institutional buying have passed the most FOMO timing.
Patiently wait for the pullback to end before looking for suitable opportunities to enter.
Back to the market, ETH is rapidly following the market downwards. The main reason is still the aftermath of Fed Chair Powell's hawkish remarks.
Consecutively breaking two important supports within the consolidation structures at 3750/3660. Currently, the small scale is undergoing an oversold rebound, testing the support-resistance switch around 3660. Observe whether it can reclaim this area above in the evening. If it can stabilize back above, then the small scale pullback may welcome a reversal, which could drive the larger scale to begin rebounding.
If the US stocks continue to pull back in the evening, pay attention to the large support level around 3550-3500. As per previous suggestions, external funds are eyeing the market, ready to follow the trend and flood in based on news. The rebound strength of small short positions will be relatively strong, so be quick to take profits on short positions.
Upper Pressure: 3660/3720/3749/3817/3850
Lower Support: 3595/3550/3502
