$ETH 4-Hour Chart Market Analysis (May 7, 2026)

1. Current Market Situation
ETH rebounded from $2,230 to a high of $2,422, with a bullish arrangement that was once stable, but on the evening of May 6, a large bearish candle broke below the MA7 (2361) and MA25 (2352). Currently, it is receiving slight support near MA99 (2322).
The short-term upward trend has been broken, selling pressure above is concentrated, and chasing high positions has trapped funds.
Core fluctuation range: $2,295-$2,360. Within this range, range trading can be done; upon breaking the range, adjust strategies accordingly.
2. Trading Strategies
Overall approach: Defensive, trend-following operation
1️⃣ Long (buying on dips, light positions)
Entry conditions: Price retraces to $2,295-$2,300 and shows signs of stabilization (doji, small bullish candles, etc.).
Entry point: $2,300-$2,310, position size 10%-20%.
Stop loss: Exit if it falls below $2,280.
Take profit: $2,350-$2,360 (MA25 resistance), if broken, then look at $2,390.
2️⃣ Short (trend-following mainly)
Entry conditions: Price rebounds to the $2,350-$2,360 zone and encounters resistance, then falls back (long upper shadow, large bearish candle).
Entry point: $2,350-$2,360, position size 20%-30%.
Stop loss: Exit if it breaks above $2,370.
Take profit: $2,300-$2,295; if broken, watch for $2,260.
3. Risk Reminder
The current trend is bearish; avoid blindly bottom-fishing.
Pay attention to BTC and the overall market linkage, follow the overall trend.
Core principles: trend-following, light positions, stop-loss first, survival is more important than making money.
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