Thursday Ethereum Morning Technical Analysis.

From the two-hour K-line chart, the recent consecutive bearish candles have relatively large bodies, indicating that the bears are releasing their strength. Interestingly, during the decline, the trading volume did not show significant accumulation, which instead suggests that the rebound momentum is already weakening. After a recent rally, this kind of pullback is a common technical correction. The possibility of further downside testing for support remains quite high.

Looking at the 4-hour chart, the price has already broken below the middle band of the Bollinger Bands. The key support level below is around $3,120 — this is currently the most critical line of defense. All three lines of the KDJ indicator are already in the oversold zone. While oversold conditions may trigger a rebound, the overall trend still shows downward momentum has not changed. Therefore, before the price effectively recovers back above the Bollinger middle band, any rebound could present a better opportunity for short positions.

From a trading perspective, the first target below is around the previous low of $3,120. If the price breaks below that, the $3,000 psychological level may also come under threat.

Thursday Recommendation: Short at $3,200–$3,220, with a target around $3,100.