Last week, the Ethereum market experienced significant volatility. After breaking through the historical high of $4956, the market immediately entered a correction phase. Major investors and institutions took profits at the high, leading to a weakening of bullish momentum. From a daily chart perspective, the price slid from the upper Bollinger Band down to below the middle band, but has not yet broken below the 30-day moving average support, indicating that there is still potential for an upward breakout in the market.

Last week, the price fluctuated between $4254 and $4956. Although there was some buying support at the lower end, it failed to generate an effective rebound. Currently, the bears still dominate the market, and without significant positive news, the bullish momentum may continue to remain relatively subdued.

From a technical perspective, the 4-hour chart shows that the Bollinger Bands are about to converge, with the three lines appearing parallel, corresponding to the oscillation range of 4520-4404-4288. The short-term and medium-term moving averages are forming resistance in the 4400-4480 range, displaying a composite crossover state. If the price can stabilize above 4400 USD, it may consolidate in this range for a period of time.

The MACD indicator is currently moving upwards with a golden cross below the zero axis, but the fast line has begun to turn downwards, and the two lines are almost parallel, indicating that bullish strength is gradually weakening, and the market may continue to move sideways. The RSI indicator is in the normal trading range, with the two lines crossing downwards, suggesting a possible further decline.

Comprehensive analysis indicates that the market may maintain a sideways oscillation with a downward trend. The hourly chart shows that the price is currently in a rebound phase after breaking below the lower Bollinger Band. If it cannot stabilize in the 4430-4440 range, a second downward probe may occur.

Based on the current market conditions, investors may consider the following strategies: For bearish traders, a first short position can be established around $4450, with a top-up near $4540, and a stop loss set at $4580. The first take profit target is $4370, and the second take profit target is $4320. For bullish traders, a first long position can be established around $4330, with a top-up near $4250, and a stop loss set below $4200. The first take profit target is $4400, and the second take profit target is $4450.

Regardless of the strategy adopted, investors should closely monitor market trends, adjust strategies in a timely manner, and strictly implement risk management measures to cope with this uncertain market environment.