ETH pulls back from highs and consolidates in a volatile range

Consolidation is a prelude to a trend; patience is the foundation of profitability. Currently, ETH has retreated from its previous highs and is stuck in a range, with balanced buying and selling forces. Only by anchoring on key support and resistance levels can one accurately seize short-term opportunities.

News: ETH spot ETF capital inflows are below expectations, with profit-taking by institutions increasing selling pressure; Layer2 ecosystem enthusiasm cools down, macro liquidity expectations remain neutral, and short-term catalysts are lacking, leading to cautious market sentiment.

Technical: ETH is oscillating around 3185, with a rectangular consolidation pattern on the 4-hour chart. Bollinger Bands are narrowing, with the upper band resistance at 3280-3300 and the lower band support at 3100-3150. The 5/10-day moving averages are intertwined and flattening, indicating waning bullish momentum. MACD is near the zero line, RSI hovers around 50, with no obvious overbought or oversold signals, suggesting a short-term directional decision window is approaching, beware of false breakouts followed by reversals.

Strategy: Short-term trading should focus on high sell and low buy within the range, strictly controlling position sizes and avoiding chasing rallies or panic selling.

Long positions: Enter gradually around 3100-3150 support, with a stop-loss below 3080, targeting 3250-3280. A breakout above 3300 could extend to 3350-3400.

Short positions: Lightly attempt short at resistance zones 3280-3300, with a stop-loss above 3330, targeting 3200-3150.

Disclaimer: This analysis is for technical and market sentiment interpretation only and does not constitute any investment advice. Cryptocurrency markets are highly volatile; investors should make rational decisions based on their risk tolerance. Trading results are at your own risk.