Hey everyone, let's look at the ETH chart, which has been on a rollercoaster today. After a period of selling, the buyers have launched a powerful counter-attack from the lows, creating an impressive V-shaped recovery. This isn't just a weak bounce; it's a confident move that has erased much of the earlier decline and put the bulls back in the short-term driver's seat.
Now, for our short-term traders, this is a critical moment that calls for discipline. The rally has been a fantastic sprint, but it has now run head-first into a wall of resistance. At the same time, our momentum gauge is getting hot, suggesting the move is getting tired. Chasing the price here is a high-risk play. The professional approach is to wait and see if the market can break through this wall or if it needs to pull back and catch its breath first.
And for our long holders who caught that bounce, congratulations on a great entry. The strength of this recovery is a very positive sign for your position. Your job now is to manage the trade. The market is at its first major test. A strong push through this resistance would be a signal to let your winner run. A sharp rejection, however, would be your cue to consider pocketing some of those well-earned gains. As always, this is not financial advice. Know your strategy.