Ethereum 3741 support break down rebound opportunities and downside risk strategies

The core logic and the warning of support breakdown

• Impact of the 3741 support failure: The $3741, which was previously regarded as "hard support," has been breached. If it cannot be quickly reclaimed, the probability of "going cold" significantly increases—if it breaks below $3615 on the 4-hour chart, it will test $3505, showing obvious weak characteristics;

• Limitations of the Rebound: The current rebound is only a short-term correction, and it needs to break through 3693 USD to open up space, targeting 3753 USD. However, there is dense pressure above, and without sustained volume, it will be difficult to continue.

Key Level Trading Strategy

• Long conditions:

1. Volume breakout at $3693 → chase longs on the right side (take the rebound), target $3711 → $3753, withdraw stop loss;

2. Pullback to confirm support at $3600 → light position to try long, stop loss if it breaks below $3569;

3. Long position at $3524 on the left side, stop loss if it falls below $3500 (deep pullback for accumulation, requires extreme market conditions).

• Short selling conditions:

1. Take a position to short when the price breaks below $3651 → target $3670 → $3600, rebound cannot recover stop loss;

2. Shorting lightly at $3765, stop loss at $3800 (shorting at resistance level, needs weak confirmation);

3. 4-hour level breaks below $3615 → increase short position, looking down to $3538 → $3505, resonating with the support break.

Form and Operation Discipline

• Caution after the support break:

◦ After the loss of 3741 dollars, the rebound strength is limited. 3711 dollars is the short-term support line. If it cannot break through, it will continue to decline;

• Rebound's quick in and out:

◦ Long positions are only for short-term rebounds, without expecting long-term increases. Take profit in time when encountering resistance around $3753 to avoid being trapped.

Summary: Ethereum is weakly dominant after breaking support. The core of the operation is: chase long positions on rebounds relying on a breakthrough at 3693 USD, closely monitor for a break below 3651 USD for short positions, and if it cannot recover above 3741 USD, abandon hope, focusing mainly on short positions.