$ETH ETH Morning Analysis

After pushing the price up to a stage high, it forms a sluggish inverted-hammer pattern and then shows a downsloping “dead-zone” hammer look, creating a baiting-and-luring top structure. The short-term moving averages that originally provided support have now turned into a key battleground for bulls and bears. A large amount of trapped positions has accumulated in the upper range, and sustained selling pressure continues to suppress further upside.

The oscillators weaken at high levels and form a death cross, while the bulls’ buying pressure continues to fade. As the price surged with heavy volume and then pulled back with heavy volume as well, clear signs show that the main players are distributing in batches at higher levels. By this point, the bullish momentum for this rebound has already been exhausted due to price-volume divergence. Also, there isn’t enough incremental capital coming in from outside, so the rebound is only a brief correction as trapped positions try to escape.

The key integer support is the short-term line of defense. Once it breaks, it will trigger a concentrated closing of long positions by the bulls. Below, there are swing-rising support levels waiting to be tested. With price, volume, and indicators peaking in sync and resonating together, the market has switched to a bear-led rhythm. In the rebound under-pressure range, following the trend and shorting is the main approach; pay attention to the downside risk after supports break.

Trading idea: Short around 1620-1640, target 1570-1520.