The 4-hour ETH chart shows an extreme Bollinger Band squeeze. When the Bollinger Bands contract to this extent, it usually indicates that price volatility is at a historical low, and the market is building momentum—an impending major trend is on the way.

In such an extremely compressed environment, a breakout direction often provides strong signals for what follows. Traders need to closely monitor the trading volume during the breakout and the performance of key support and resistance levels.

The Bollinger Bands squeeze itself does not predict direction, but when combined with other indicators (volume, cycle resonance, key price levels), it can significantly increase the trading win rate. Such extreme patterns often harbor considerable opportunities and are worth close observation.