The recent movement of Ethereum has been quite interesting, from a frantic surge to a stall at high levels, playing out a dramatic shift in market sentiment.

Let's look at the numbers first: on the first day, a surge with high volume pushed the price up over 7%, briefly reaching $3403, seemingly ready to break through the sky in one go. But the next day, it started to falter, stuck around $3370 with repeated sideways movement, and trading volume quickly shrank, showing no signs of breakthrough throughout the day. This high-level stagnation combined with shrinking volume is a clear warning sign on the technical side.

What’s really concerning are these details: the $3400 barrier is barely holding, touching it triggers a pullback, and $3370 has become a stubborn wall. On the surface, there seems to be support around $3300, but the quality of this support is actually quite questionable. More importantly, leverage positions in the market are piled up too heavily. After a wave of liquidation, there are still a large number of long positions hanging high, and a small retracement could easily trigger a chain reaction of long-liquidations.

The RSI is approaching overbought territory, indicating that market sentiment has shifted from cautious to greedy in just a few days. High-level stagnation, declining volume, and resistance above are three signals that appear simultaneously, which is not a good sign. The risk of fake breakouts trapping traders is especially high now. Once the price falls below 3290, it could directly trigger a waterfall decline. The next key level to watch is whether the price can hold the 3200 to 3130 range.

Advice for holders: do not be greedy with profits—if you have gains, take some off the table. Don’t think about chasing above 3350. If you still want to hold, set a stop-loss below 3290 and exit immediately if broken—don’t hesitate. The safest approach right now is to stay in cash, wait for the situation to clarify, and avoid the risk of being caught in a stampede.