Ethereum (ETH) is currently in a critical price range, with both bulls and bears fiercely contesting around the $4500 mark. The upper level of $4495 has formed a strong resistance level, with ETH attempting to break through multiple times but failing each time; while the lower level of $4269.98 (corresponding to the fibonacci retracement level of 78.6%) provides strong support, as buying support is encountered every time the price falls to this level.

Currently, ETH is trapped in this narrow range of about 200 dollars, oscillating repeatedly, with trading volume continuously shrinking, indicating that market participants are on the sidelines, waiting for clear directional breakout signals.

From a technical indicator perspective, the DIF (17.71) and DEA (12.18) in the MACD indicator remain above the zero axis, but the red bars are slightly contracting, indicating a weakening of short-term momentum. The MA5 and MA10 moving averages are tending to flatten, and the RSI indicator is in a neutral zone, showing a typical oscillating trend overall.

This stalemate is not expected to last long. Sideways consolidation often indicates that a directional choice is about to be made, with the key being which support or resistance level is broken first. Some believe this could be a consolidation on the way up, but the prerequisite is that the support at $4269 must hold. If this level is broken by a large volume of transactions, it could accelerate the fall to $4220 or even lower.

In the current market conditions, investors should remain patient and wait for the market to find a clear direction on its own. If it breaks through $4494, consider going long in the direction of the trend; however, if it falls below $4269, a risk-averse strategy should be adopted. In a volatile market, it is wise to avoid chasing highs and cutting losses, and patiently waiting for a clear trend is a smart choice.

Market participants are generally concerned whether ETH will break through the resistance level, prompting short covering, or fall below the support level, leading to long liquidations. Against the backdrop of the upcoming CPI data that may have a significant impact on the market, the movement of Ethereum will provide important reference for the entire cryptocurrency market.