Ethereum (ETH) Market Analysis and Trading Strategy: May 8, 2025

Under the current market environment, the price of Ethereum (ETH) shows a significant sideways contraction trend, and price volatility has decreased, but market sentiment still needs to be treated with caution. The following is a detailed analysis of the latest Ethereum market and corresponding short-term trading strategy suggestions.

Market behavior and price structure

The current price of Ethereum is US$1,805, at 3:30 am Beijing time. In yesterday's trading, Ethereum price started north from around $1,750, hitting a maximum of $1,850. This price trend shows that the main funds may be operating at high levels to pull up shipments, which has occurred many times in the past market.

Judging from the daily chart, the price is up to $1,850 and the lowest is $1,785. The current price just stood firm at the bottom support level of $1,785 for the EMA trend indicator. The overall trend has entered a sideways contraction stage, and the large-level trend indicators are also shrinking, and the MACD indicator shows that the volume is reduced. If the price cannot hold $1,780, DIF and DEA will form a dead fork, and the bear momentum may be further strengthened. The upper rail pressure is at $1,935, and the lower rail support is at $1,760. It is worth noting that both the pressure level and the support point are moving downward, showing a weakening of the overall market trend.

Short-term trading strategy

In short-term operations, safety is the first priority. The market is full of uncertainty, so be sure to bring a stop loss to ensure the safety of the principal. Small losses and big profits are the goal of short-term trading.

The northbound test position is recommended to set the defensive position between 1760 and 1780 US dollars, set the defensive position at US$1740, stop loss at 30 points, and the target is to US$1800 to US$1840. If it breaks further, it can be seen to US$1870.

The southward test position is recommended to set the defensive position between 1830 and 1850 US dollars, set the defensive position at US$1870, stop loss at 30 points, and the target is to US$1800 to US$1790. If it breaks further, it can be seen to US$1760.

Judging from the four-hour chart, the price shows a "painted door" market. The main force began to fall back after rising. The price has fallen into the EMA trend indicator, blocked by the EMA90 support level of US$1,787. The MACD indicator shows that the increase is reduced, the DIF and DEA fail to hit the 0 axis, the Bollinger band is focused on $1,850 in the upper rail and the lower rail is focused on $1,770 in the lower rail. Overall, the bear trend is relatively strong, and further pressure from the Air Force is not ruled out. Therefore, investors who plan to buy at the bottom may need to wait patiently to see if there are better opportunities to enter.

Interpretation of technical indicator signals

The MACD indicator shows a decrease in volume on the daily chart. If the K-line cannot hold US$1,780, DIF and DEA will form a dead cross, indicating the increase in the bear momentum. On the four-hour chart, the MACD indicator also showed a decrease in volume, and DIF and DEA failed to hit the 0 axis, further confirming the short pressure in the market in the short term.

The Bollinger Band shows a sideways trend on the daily chart, and the price failed to effectively break through the upper rail pressure level of $1,935. On the four-hour chart, the Bollinger band shrinks and the price hovers around the middle track, indicating that the market volatility is reduced and the price may continue to remain within the current range in the short term.

EMA trend indicators show that Ethereum price is currently firming on the daily chart at EMA bottom support at $1,785, while on the four-hour chart, the price is blocked by the EMA90 support at $1,787, indicating that prices may continue to be suppressed in the short term.

Summary and risk warning

Before conducting any trading operations, be sure to ensure the safety of the principal and set stop loss and take profit reasonably. The market is full of uncertainty, and investors need to bear the risks themselves and operate with caution. Although the current market volatility has converged, the implicit risks have not been eliminated, and controlling positions is still the top priority. The essence of trading is survival, followed by profit. Therefore, before each operation, you should first evaluate whether your operation is reasonable and whether the principal is safe. Forming a set of your own trading ideas and continuously optimizing and improving them is the key to long-term survival in the market.

On the road to chasing your dreams, you are never alone. The darkest moments are often pre-dawn moments. I hope you can persevere and achieve your financial goals.

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