Ethereum wedge breakdown recovery attempts and strength differentiation strategy

The key significance of the core form and the recovery of the wedge shape.

• Repair opportunity after wedge breakdown: After the wedge pattern is broken, it is currently trying to recover within the pattern—if successful, it is expected to retest the resistance at $3735. If it stands firm, the Fibonacci 1:1 target of $3815 can be looked at, and even a push towards $3900; if recovery fails, the downward trend will continue, and attention should be paid to the support below.

• Comparison of Strength with Bitcoin: The daily level shows that Ether is "extremely strong", having nearly recovered from the weekend's decline, clearly stronger than Bitcoin, but ultimately still constrained by Bitcoin ("If Bitcoin doesn't rise, Ether finds it hard to thrive alone"), so it's necessary to pay attention to Bitcoin's movements simultaneously.

Key Level Trading Strategy

• Long Position Conditions:

1. Volume breaks through $3676 → buy on the right side, target $3709 → $3737, recover stop loss;

2. Stand firm at $3709 → increase long position, looking up at $3773 → $3815, need to break through the resistance at $3735 to confirm;

3. Recover wedge pattern +$3735 stabilizes → Target $3900, relying on $3709 defense.

• Shorting Conditions:

1. If the volume drops below $3659 → short on the right side, target $3608 → $3576, if the rebound cannot recover, stop loss;

2. If it breaks below 3608 USD on the 4-hour chart → add to short position, target 3528 USD, and need to simultaneously observe whether Bitcoin is weakening;

3. 3735 US dollars encountered resistance + insufficient volume → light position short, stop loss at 3773 US dollars, betting on a short-term pullback.

Support defense and strong-weak boundaries

• The importance of $3608 and the low point:

◦ $3608 at the 4-hour level is a key support, and if it breaks, it will test $3528; "If it does not break the low point of 3 o'clock" (short-term important support), then the fluctuations can be controlled, and the bulls still have a chance;

• The limitations of the independence of the second pancake:

◦ Although it is stronger than Bitcoin in the short term, one must be wary of Bitcoin's drag—if Bitcoin weakens, the recovery process of the altcoin may be interrupted, and in terms of operations, the trend of Bitcoin should be used as an auxiliary reference.

Summary: Ethereum's short-term focus is on wedge recovery and stabilizing at $3709. The core operation: Long positions rely on breaking through $3676 to follow up, closely watching the strength line at $3709, while short positions rely on breaking below $3659, and also being cautious of Bitcoin's influence on altcoins.