Ethereum continues its upward momentum, but is $4,000 on the horizon? Not quite yet. Let’s approach the market step by step, focusing on realistic targets. Good evening, traders! This is a market update to guide you through Ethereum's movement. If you’ve been following our long position strategy, congratulations! Our initial target of $3,540 has been successfully hit, netting a solid gain of 180 points.

However, many traders seem eager to jump into new long positions. Here’s a word of caution: patience is key. It’s better to wait for a healthy pullback before considering another entry. A glance at the 4-hour chart reveals some crucial insights. The first major resistance level lies around $3,580, but it’s highly probable that Ethereum will breach this zone due to the ongoing strength of the bulls. The current 4-hour candlestick pattern shows six consecutive green candles, with the KDJ indicator sitting at an overbought level of 90. Additionally, the Bollinger Bands are expanding, signaling that another push upward is likely.

Now, here’s a critical reminder: avoid rushing into short positions just because you missed the long trade. Market conditions favor caution over aggression. A safer and more strategic short entry point lies around the second resistance level of $3,670–3,700. This zone presents a strong potential for a pullback, as Ethereum is likely to correct naturally after a sharp rise. A 4-hour level retracement is almost inevitable at these levels, offering an excellent opportunity to profit from the reversal.

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Recommended Strategy

1. Short Position Entry:
Consider opening short positions between $3,680–3,710. This range is ideal, as it aligns with historical resistance and market behavior.

2. Profit Target:
Aim for a pullback toward the $3,320 level. This allows you to capitalize on the natural decline following the bullish rally.

3. Key Notes:

Monitor the market carefully and avoid chasing the trend impulsively.

Use the 4-hour chart to confirm overbought signals and maintain a disciplined approach.

Be prepared for volatility and adjust your risk management strategies accordingly.

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The Ethereum market remains dynamic and full of opportunities for both long and short traders. For now, let the bulls exhaust their run and position yourself for the next calculated move. Stay sharp, plan your entries wisely, and let’s aim for another profitable session!