Market Turnaround for ETH After $3069: The Dual Impact of Upgrades and Interest Rate Policies

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Ethereum (ETH) has experienced recent price fluctuations, with the current trading price at $2.11K. This adjustment not only breaks the previous streak of continuous gains but also reflects multiple pressures facing the market. Investors need to recognize that in highly volatile markets, there is no always-winning trading strategy—risk management is always the cornerstone of successful trading.

The Importance of Market Volatility and Risk Management

Last night’s sharp surge was sudden and disrupted the original trading rhythm. However, by the afternoon, the market gradually stabilized, and investors profited from the subsequent upward trend. This rapid reversal indicates that current market sentiment is unstable, and a one-sided trend is difficult to sustain. In such an environment, precise stop-loss placement becomes especially critical—every price breakout could signal a reversal.

Macro Event-Driven Factors: Upgrades and Interest Rate Policy Outlook

Ethereum’s future movement will be influenced by two key events. The first is the upcoming Ethereum network upgrade, which will introduce new variables to the on-chain ecosystem; the second is the Federal Reserve’s interest rate cut decision on February 10. This rate cut typically boosts risk appetite in the cryptocurrency market. According to expectations, this rebound could last until February 8 or 9 at most.

Current Trading Deployment and Support Level Analysis

Based on technical analysis, investors are advised to establish short (sell) positions in the $3,120–$3,150 range, with a stop-loss set at $3,180. The key support level below is at $3,050—if this support is broken, continue holding short positions; if the support holds or rebounds after being broken, consider taking profits. This trading framework fully considers current market uncertainties, defending against excessive risk while leaving room for potential rebounds.

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