As Ethereum (ETH) continues to rise, market sentiment is increasingly nervous, especially when ETH is close to breaking through key price levels. Currently, the price of ETH has gradually approached $3,800 and is expected to challenge $4,000. Once it breaks through $4,000, the market expects a violent short liquidation, which may push up the price of ETH. According to the liquidation heat map, ETH's short positions between $3,800 and $4,000 will trigger a large number of liquidations, especially at $4,000, the liquidation volume will increase sharply, showing the high risk of the market.
Support: The current ETH price is $3,565, slightly below the key resistance level of $3,800. The recent strong support area is at $3,300. If it falls below this level, the market may begin to correct and investors should operate with caution.
Resistance level: $3800 is seen as a key short-term resistance area. If ETH breaks this resistance, it may quickly test $4000. Once it breaks $4000, the market may see larger-scale short liquidations, driving ETH prices to continue rising.
Liquidation heatmap: The liquidation heatmap indicates that if ETH prices break through $4000, over $835 million in short positions will be forcibly closed, which may trigger a bullish trend and further push ETH prices higher. Therefore, $4000 is a crucial price point, and a breakout may lead to a price surge.
From the daily chart of Ethereum, ETH currently shows a strong upward trend. Key technical indicators support this trend:
The 50, 100, and 200 EMA (Exponential Moving Averages) are all pointing upwards, indicating an overall bullish sentiment in the market.
After breaking through $3,200, ETH has established solid support and further consolidated upward momentum around $3300 and $3500.
The current price of $3565 is still slightly below the $3800 resistance area, but the probability of continuing to rise is high.
As the market approaches the critical $3800 to $4000 range, investors should closely monitor potential breakouts and short liquidation reactions.
The following are operational suggestions based on current trends:
Breakout strategy: If ETH breaks through $3800 and continues to rise to $4000, short-term long positions can be considered to capitalize on potential liquidations pushing the market further upward.
Short stop-loss: If the market quickly approaches the $3300 support and fails to bounce back, it is advisable to consider closing positions and observe whether the market will enter a correction phase.
Cautious operation: Due to the possibility of large-scale short liquidations leading to extreme volatility, investors should remain cautious within this range and try to avoid chasing highs, especially during short-term fluctuations after a breakout.
Volatility management: As prices approach $4000, volatility may increase, and investors should control their positions and set appropriate take-profit and stop-loss points to prevent excessive risk exposure.
Currently, Ethereum is at a critical technical and market moment. After breaking through $3800, the market may test $4000, accompanied by a large number of short positions being liquidated, driving the ETH price up. However, due to the high sensitivity of market sentiment, investors should remain cautious, avoid chasing highs, and pay attention to market pullback signals. As Ethereum approaches these key price levels, market volatility will intensify, and risk management should be noted during operations.
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