ETH Market Analysis Today: The market is ever-changing, grasping the key levels.
In the cryptocurrency sphere, filled with opportunities and challenges, "market conditions change rapidly, only the perceptive can stand undefeated." Today, let's have a thorough discussion about ETH's market trends, combining the latest market news and technical indicators to inform everyone.
Next, let's talk about the news aspect. Today, the overall news in the crypto market is relatively calm, without any major news that could instantly change the market direction. However, we cannot ignore the impact of macroeconomic factors on the cryptocurrency sphere. Take the Federal Reserve, for instance; its monetary policy actions influence the market significantly. If the Federal Reserve intends to raise interest rates, the dollar may strengthen, leading to a capital outflow from the crypto market, which could put pressure on ETH's price. Previously, when the Federal Reserve hinted at raising interest rates, mainstream coins like BTC and ETH experienced a certain degree of decline.
Let's first take a look at today's technical situation. From the 1-hour candlestick chart, it is evident that ETH's previous upward momentum was quite fierce, with the price skyrocketing along the upper band of the Bollinger Bands, like a runaway wild horse. This clearly shows that the bulls are in control, and market sentiment is optimistic. It's similar to the previous DeFi boom, when many project tokens surged due to the favorable winds, and ETH also benefited, attracting a large influx of capital.
But then, the price started to fall back towards the middle band of the Bollinger Bands. This indicates that there is significant selling pressure above, and the bulls are struggling a bit. It's like a car speeding on the highway suddenly encountering strong resistance, forcing it to slow down. From the Fibonacci retracement perspective, the price broke through several key retracement levels during its rise from the low, showing strong upward momentum at that time. But now that it has pulled back, we need to pay attention to whether it can gain support at key positions, like the 38.2% retracement level at 3650.00, which is very crucial. Previously, when ETH retraced to a similar key position, it gained support and initiated a rebound.
Personal opinion:
Last night, ETH broke through 4000 at around nine o'clock and then rose to 4078 before pulling back. Bing Bing predicts that ETH's market forecast will rise in the future. Based on both technical and news analysis, ETH is likely to continue its retracement trend in the short term. The upper pressure at the round number 4000 is significant, and if the price cannot effectively break through, it may continue to decline. The support level below is first at around 3800, and if it can stabilize at 3800 with increased trading volume, there may be a rebound. However, if 3800 cannot hold, we will have to look for support at the Fibonacci retracement level of 3650.00.
Friends, when investing in the crypto sphere, be extremely cautious and avoid blindly chasing after rises or selling off in panic. It's essential to formulate an investment strategy based on your risk tolerance. Now the question arises, facing the potential retracement trend of ETH, are you planning to wait for the right moment or prepare to position yourself in advance? Feel free to leave your thoughts in the comments section!
