It's so exciting! The bullish and bearish psychological battle behind Ethereum's plunge

Ethereum’s recent market move has truly been nerve-wracking. Dropping straight from 3020 to 2780, nearly a 10% decline in a short period, the market is in a state of panic. But don’t be fooled by the surface-level plunge; this is precisely a psychological contest between bulls and bears at a critical juncture. Currently, Ethereum is trading around $1.98K, with a 24-hour increase of +2.27%, showing signs of rebound. What’s the logic behind this?

Rapid Drop to Bottom and Rebound: Major Players Setting Up Defenses at 2780

After breaking through a key support level, a chain reaction ensues. Stop-loss orders and leveraged long positions are liquidated like dominoes, one after another, unleashing intense selling pressure. On the surface, it looks like market sentiment is being crushed; in reality, large funds have long been standing still, even temporarily withdrawing their buy orders. Their clear goal is to scare off high-leverage longs and weak-handed holders at low costs, so they can opportunistically accumulate at lower levels.

Once the price hits around 2780, subtle changes occur. A prominent long lower shadow appears on the candlestick chart—this is no coincidence. What does it indicate? It suggests that big players believe 2780 is low enough; if the price drops further, cheaper chips will be snatched away by other opposing traders. Therefore, the 2780-2800 range has become a critical technical support and cost zone. Major players are setting up defenses here, holding this bottom line, and the long-term bullish logic remains intact.

Narrowing Candlestick Pattern, MACD Bullish Crossover but Strength Pending Confirmation

From a technical perspective, Ethereum’s candlesticks have formed a narrowing triangle pattern. The upper boundary acts as a bearish resistance line and also a pressure point for rebounds; the lower boundary is a bullish support line and a rebound foundation. Currently, the MACD has shown a bullish crossover, but the issue is—this crossover lacks strong momentum. It can only be considered a technical rebound, far from a trend reversal. This reminds us that the rebound might just be a short-term correction, requiring further confirmation through volume and time.

Key Levels Overview and Three Possible Market Directions

The bulls have a clear target: hold above 2880-2900. Once surpassing 3020, a new upward wave could begin. The bears are preparing to defend at 2950-2980, with 3020 as their line of defense. If the 2780 support fails, lower supports at 2720 and 2650 are waiting.

In other words, the upcoming movement will evolve along three paths. The first is a rebound scenario—price supported at 2780, gradually testing 3020. The second is a consolidation phase—oscillating between 2780 and 2950, waiting for trend confirmation. The third is a breakdown—if bulls falter, the price below 2780 could see successive breakdowns. Currently, the market is in a critical consolidation and accumulation stage.

Spot Contract Dual Strategies: Risk Management Is Key

For spot traders, as long as 2780 isn’t broken, consider deploying gradually. But be prepared for short-term volatility, which could be intense, requiring confidence and patience.

Futures traders have more flexibility. Within the 2780-3020 range, they can adopt a high sell-low buy strategy, provided they set proper stop-loss levels. Stops can be placed at 2760 or 2750, so even if the judgment is wrong, losses remain manageable.

Market changes are unpredictable, and the rhythm of the行情 always surprises. To profit steadily in this bulls vs. bears battle, the key is to understand market temperament—closely monitor support and resistance reactions, make cautious decisions, and avoid greed and haste. Explosive行情 often contains the most trading opportunities but also the greatest risks. Prioritizing risk management is the long-term survival strategy.