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Ethereum (ETH) has recently performed strongly, rapidly climbing to around $4200 after breaking through the key resistance level of $3800. This rise has attracted the close attention of market participants regarding its subsequent direction.
Analysis shows that ETH may not experience a deep pullback. The next potential retracement level may appear near the important psychological threshold of $4000. Another possible scenario is that ETH will oscillate within the range of $4100 to $4200, accumulating momentum for the next rise.
It is worth noting that after breaking through from $3,800 to $4,200, ETH has achieved an increase of about double the range of the breakout. For investors seeking entry opportunities, the range of $3,800 to $3,900 may be an ideal buying position, as this area is close to the breakout point, and the risk-reward ratio is relatively favorable.
However, investors should bear in mind that the cryptocurrency market is highly volatile, and price trends are influenced by various factors. In addition to technical analysis, it is essential to pay attention to the macroeconomic environment, regulatory trends, and the development of the industry. When making investment decisions, it is crucial to conduct comprehensive research and risk assessment.