Ethereum (ETH) is currently in a critical price range, with market participants closely following its movements. The latest data shows that ETH has rebounded from $3670 to the range of $4030-4040 and is facing dual pressure from the 24-hour high of $4040 and the psychological barrier.

Short-term technical indicators show that the relative strength index (RSI) on the 15-minute and 5-minute charts once exceeded 70 and 90, suggesting the market may be in an overbought condition. It is worth noting that the upward momentum seems to lack sufficient trading volume support, which could lead to a failed breakout or a false breakout.

Key price levels include:
- Resistance level: $4028-4040 (24-hour high and dense order zone at integer level)
- Strong resistance: $4086-4110 (previous intraday high area)
- Support Level: $3988-3996 (Neckline/Upper Boundary of the Central Zone)
- Secondary support: $3904-3914 (pullback support zone)

Market analysts have proposed a short-selling strategy primarily targeting the resistance level above. The triggering conditions for this strategy include two stages: first, an upper shadow line appears in the range of $4032-$4040, a top formation occurs on the 15-minute chart, or a bearish engulfing pattern appears, while the 1-hour RSI has not broken through 60 and is retreating, or there is a significant amount but the price momentum is weak. Secondly, after the price breaks below $4000, it subsequently fails to rebound in the range of $4000-$4008.

Entry point suggestion:
- Aggressive: $4036 (near the upper range)
- Conservative: $3996-4002 range after the $3999 pullback failure

Stop-loss setting:
- Aggressive: $4056 (avoid the dense stop-loss area at $4050)
- Conservative: $4014

Target price:
- First target: $3988 (suggest to take profit on 50% of the position at this level and adjust the stop-loss to the entry point)
- Second target: 3900-3910 USD
- Extended target: $3878 (considered only if $3900 is significantly broken)

The potential profit margin of this strategy is over 3%, with a decline of about 3.4% from $4036 to $3900. Theoretically, an aggressive entry to the second target could achieve a risk-return ratio of approximately 5.3 times.

However, the market is changing rapidly, and investors should closely follow market trends. If the $4040 level is effectively broken and the $4028-4032 support is successfully retested, then the short-selling plan should be canceled, and one should consider attempting to short again in the $4086-4110 range, or wait to go long near the $4032 level.

Overall, Ethereum is currently in a critical technical position, and investors need to stay vigilant and adjust their strategies to respond to market changes.