Market Overview
Ethereum’s price has once again touched and briefly surpassed $3,800, accompanied by a resurgence in trading volume, indicating a clear buying support in the market. Discussions are focused on whether the ETH price’s return to $3.8K can become a trend reversal point. The tidal wave of trading reminds newbies to maintain strategic discipline while trading.
Four Steps to Confirm Before Operating
- Volume confirmation: If it breaks 3.8K with a significant increase in 24-hour trading volume, it indicates that the buying pressure is real.
- Multi-period closing observation: Pay attention to the daily line. If it can continuously close above 3.8K, the trend strength will be stronger.
- Macroeconomic and Bitcoin Environment: When Bitcoin rises in sync, it usually boosts the upward momentum of ETH; if BTC pulls back, ETH may face pressure simultaneously.
- News Tracking: Including regulatory policies, ETF trends, on-chain events (such as large transfers, significant project collaborations). Sudden positive news can help push through profit-taking; negative news conversely can strike quickly.
Four practical strategies suitable for Newbies
- Batch entry method: Divide the planned investment amount into several portions and gradually build positions in the support area, for example, buying in segments at 3.7K, 3.75K, and 3.8K to diversify risk.
- Trend Breakthrough Tracking Method: Wait for confirmation that the ETH price returns to 3.8K USD before entering, with a stop loss set 3-5% below the breakthrough to control risk.
- Callback buying method: If the breakout fails and pulls back, wait for the pullback to the support (previous high or moving average), confirm the stop decline before gradually following up.
- Short-term swing trading: Operate in the 3.7K-3.8K range with quick entries and exits, suitable for experienced traders. Newbies should avoid chasing highs or holding positions for too long.
Stop-loss and position management principles
It is recommended to control the risk of each transaction within 2-5% of the total capital, and to set stop-losses immediately after entering the market to avoid blindly chasing prices. If the market deviates from the plan, even a small loss should be decisively cut to maintain capital safety. Even if the market continues to rise, one must adhere to discipline and avoid emotional interference.
Summary and Market Suggestions
The ETH price has returned to $3.8K, indicating a possible short-term upward movement, but whether a medium-term trend can truly form still requires more support: sustained volume, a stable macro environment, and industry ecosystem backing. For newbies, the safest approach is to build positions in batches, use low leverage, combine short-term trading with medium-term holding, and strictly set stop-losses to always protect the principal. Wishing you steady trading and rational profits!