Ethereum W-bottom formation criteria and $3900 impact strategy

The key breakout level of the core logic and W-bottom.

• The prerequisite for the formation of an hourly-level W bottom: it must break through $3855, otherwise the pattern is invalid — only after breaking through can the upward trend continue, targeting $3900 and the previous high/new high; if it cannot break through, it will maintain oscillation, with insufficient upward momentum;

• Short-term significance of $3866: Holding this position is the foundation for a push to $3900, resonating with the breakout of W bottom at $3855. Aggressive traders can rely on a volume breakout at $3861 to go long, but strict stop-losses are required.

Key Level Trading Strategy

• Long Conditions:

1. Volume breakout at $3861 → aggressive buyers chase higher, target $3866 → $3886, recover stop loss;

2. Pull back to confirm support at $3753 → try a small long position, stop loss at $3710 if it breaks below;

3. Long position layout at 3676 USD on the left side, stop loss at 3626 USD (deep pullback for buy-in);

4. W bottom breaks through 3855 USD + stabilizes at 3866 USD → increase long positions, looking at 3912 USD, challenging the 3900 USD integer level.

• Short selling conditions:

1. If the volume drops below $3829 → short on the right side, target $3821 → $3792, if the rebound cannot recover, stop loss;

2. Short sell with a light position at $3912, stop loss at $3940 (trying to short at resistance level, requires confirmation of weakness);

3. 4-hour level broke below $3811 → increase short position, looking down at $3752 → $3706, clear correction signal.

The pattern and the impact rhythm of 3900 dollars

• Continuity after the breakthrough of W bottom:

◦ After breaking through 3855 dollars, sustained volume expansion is needed to stabilize at 3866 dollars; otherwise, a false breakout may occur, and 3821 dollars is the key support for a pullback.

• Psychological barrier at 3900 US dollars:

◦ When approaching this level, be wary of the resistance at $3912. The previous attempts to break through around $3900 have encountered obstacles, and bulls need to have sufficient volume to effectively break through.

Summary: Ethereum's short-term focus is on the W-bottom breakout and stabilizing at $3866. Operational core: Aggressive traders chase longs relying on the breakout at $3861, while conservative traders wait for W-bottom confirmation. Shorts should pay attention to the break below $3829 and be cautious about chasing highs near $3900.