The main reason for yesterday’s sharp surge in Bitcoin and Ethereum was the release of the US August CPI, along with a short squeeze. Ethereum soared directly from around 2430 to face resistance and pull back near 2667, and is currently fluctuating around 2500.
From the daily chart perspective, the bullish structure for Ethereum remains intact, but the long upper shadow at the highs suggests heavy selling pressure above, with the trend shifting from a unilateral rise to a high-level consolidation. Therefore, on the daily timeframe, it’s unwise to blindly chase long positions. The mid-band support line is around 2470-2480; if the price falls below the Bollinger mid-band, the trend could weaken and see a deeper pullback. If daily support holds, then it would be a good opportunity for us to enter long positions.
Yesterday, Bitcoin surged to around 79,888 before reversing downwards. The price has already broken below the Bollinger mid-band, and the daily trend has shifted from a bullish uptrend to a high-level consolidation and retracement phase. On the 4-hour chart, the trend is even clearer: the Bollinger channel is opening to the downside, highs are gradually descending, and yesterday’s low of 75,866 has become a key watershed in the near term. As long as this level is not breached, the market may continue to climb slowly after the consolidation; otherwise, if the price falls below this level, we will need to look for new resistance levels to find an entry point.
