Ethereum Market Observation on January 6th

Looking at the one-hour chart, the trend is quite interesting — it first surged then retraced, and now it’s consolidating sideways. From a technical perspective, the $4460 level faces quite clear resistance, with initial support around $4438. If it breaks below this, it’s very likely to test the round number at $4420.

What about the indicators? The three lines of the KDJ are already turning down in the overbought zone, and the K line has crossed below the D line to form a death cross — this is a typical short-term correction signal. At the same time, the MACD also confirms this, with the DIFF and DEA forming a death cross, and the green bars expanding, indicating that bearish momentum is accumulating. The probability of a trend reversal is indeed increasing.

Trading Strategy

**More aggressive**: Wait for a rebound to the $4440-4450 range and then open a small short position, with a stop-loss above $4460, targeting $4430-4420.

**More conservative**: Don’t rush; wait until it adjusts to the $4420-4430 zone before considering entry. Set the stop-loss at $4410, with an initial target of $4460. If it breaks through, there’s still $4500 above.