How do you feel about the recent market? Ethereum has been bouncing between 2200 and 2400, dropping to the floor in an hour making people want to run, then bouncing back to high levels forcing chasing orders. The comments are full of "bottom fishing halfway up the mountain" and "taking profits before takeoff."

Having been in this circle for 8 years, I want to say: this wave of volatility is not at all an end-of-the-world scenario; rather, it’s an opportunity for those who truly understand. Today, I’ll break down the 3 core signals of Ethereum’s market, so everyone can observe the K-line movements and at least avoid unnecessary detours.

Let’s start with a simple background—Ethereum is different from those purely speculative coins; the entire ecosystem is supporting it from behind. But no matter how solid the ecosystem is, short-term market movements are still controlled by two old rivals: funds and sentiment. Why has there been such frequent volatility recently? It’s basically a tug-of-war between the bulls and bears. One side is the previous traders trying to unwind their positions near 2400, while the other side is wealthy investors who see 2200 as the bottom and want to buy in. The standoff has caused the market to swing up and down like jump rope.

Here’s the key point—the first signal is looking at trading volume. Many people focus on price, but they don’t realize that trading volume is the true mirror. The recent performance is quite interesting: every time there’s a dip, the volume shrinks; when prices rise, the volume expands. What does this indicate? During declines, hardly anyone is willing to sell actively; it’s mostly retail investors panicking and being shaken out. But during rises, the entry is genuine money.