After the data release in the early morning, the market fell, and mainstream altcoins suffered heavy losses!

Ethereum shows a significant bearish trend in the short term, with a decrease in MACD bearish volume, while DIF and DEA remain in high dispersion, staying elevated. The Bollinger Bands are contracting, and the K-line has retraced and fallen below the middle band at $3815. In the short term, attention should be paid to the support level at the lower band of $3540, which can serve as an entry point for long positions. KDJ has crossed downward and is expanding, indicating an overall trend leaning towards a sharp drop. It is advised to wait for a signal of stabilization to avoid chasing highs and selling lows, preventing risks of liquidation from the main force on both ends.

Four-hour chart analysis:

The K-line has broken below the EMA120 trendline support at $3770, and this position has now turned into a resistance level. MACD volume has decreased, and DIF and DEA have dropped below the zero axis, with the lower Bollinger Band at $3750 being breached, and the K-line entering the oversold zone, not far from extreme overbought conditions. At this time, one can prepare to enter the market and decisively test positions at suitable locations without hesitation. For those looking to short, attention can be paid to the positive short support levels in the $3550 to $3500 range; if it holds, consider closing positions to take profits. Those who are more conservative can enter within this range, but must pay attention to position management.

Trading suggestions:

- Long positions: Enter in the $3550 to $3600 range, defend at $3500, set a stop loss at 50 points, target $3650 to $3700; if it breaks through, then pay attention to $3750 to $3800.