📊 Ethereum #ETH Latest Market Update on the Afternoon of December 4

Ethereum showed strong intraday performance with a significant increase, successfully breaking through the $3,200 mark. This robust rebound was mainly driven by three bullish factors:

• Technical Upgrade: Ethereum’s latest Fusaka upgrade was successfully activated on December 4, aiming to enhance network data capacity and efficiency and bring lower transaction fees to Layer 2. This is seen as a key factor driving Ethereum’s independent strong trend.
• Improved Capital Inflows: Data shows that global crypto funds recorded a net inflow of $1.1 billion last week, a 7-week high, with Ethereum ETF net inflows reaching $308 million, indicating a return of institutional funds. Meanwhile, on December 3, Ethereum spot funds had a net inflow of $71 million, marking a shift in capital flows from distribution in November to accumulation.
• Positive Macro Expectations: The market’s expectation for a Fed rate cut in December has risen to 86%-89%, increasing the appeal of risk assets.

From a technical perspective, the 4-hour moving averages are in a bullish alignment, but the Relative Strength Index (RSI) has entered the overbought zone (approaching 74), indicating a short-term risk of a technical pullback.

💎 Comprehensive Recommendations and Reminders

In summary, current market sentiment is optimistic amid favorable factors, but the price is at a key resistance level, and caution is warranted.

• Watch for Breakout Validity: Closely monitor price action in the critical $3,220-$3,250 zone. Whether the price can break through with volume is an important indicator for further upward movement.
• Beware of High Leverage Risk: Data shows ETH open interest is increasing, and RSI is overbought. High leverage may intensify market volatility and trigger sharp short-term pullbacks.
• Control Position Size: It is recommended to use only a small proportion of your total funds for short-term trades and avoid heavy positions.
• Monitor Macro Events: Pay close attention to this Friday’s non-farm payroll data and next week’s Fed policy meeting. Any unexpected news could trigger significant market fluctuations.

We hope this detailed analysis based on the latest market conditions helps you make prudent decisions. Please note, the market changes rapidly, and the above analysis is for reference only and does not constitute investment advice. $ETH