Tonight's ETH trend will depend on whether the bullish flag can effectively break through. This pattern directly determines the direction of the subsequent market, so we must not be careless.

If the flag pattern fails to break through the upper resistance, once it falls below, the risk escalates immediately. Pay attention to the area indicated by that large bearish candlestick—this is a chip vacuum zone. Once it drops into this area, the rate of decline will be twice as fast as the rate of increase, making it easy to trigger a sell-off.

This is how to look at the defense line: 2937 is the final bottom line. As long as this position is not broken, the pullback and fluctuations are within a controllable range. However, once it is breached with strong volume, we need to quickly focus on the 2844 level. To reverse the downward trend, a volume breakout above the flag pattern and stabilization above 2993 is essential; otherwise, we can only maintain a fluctuating consolidation without expecting a significant rebound.

Practical indicators: If the position at 2970 breaks upwards with volume, then it can be considered to chase long on the right side; if 2932 breaks down with volume, then one must decisively chase short.

When operating, be sure to closely monitor the changes in trading volume, and set your stop-loss properly to effectively avoid risks.

In detail, if the hourly line can hold above 2970, the target will point to the 3000-3037 range; if the 4-hour line breaks below 2944, pay close attention to the downward target of 2885-2812.

Just to add: the hourly M-head from noon has now been confirmed. After breaking the 2975 neckline earlier and attempting to recover, it ultimately failed, confirming the downward trend. Only by regaining 2975 can the M-head be considered invalid; otherwise, the downward pattern continues.

The logic is very clear; just execute according to the points and volume rules.