ETH faces a critical choice: 16 billion liquidity injection by the Federal Reserve, technical analysis reveals key upward levels

Market News: Liquidity Expectations Support Market Logic

The latest $16 billion liquidity injection announced by the Federal Reserve is not simply a bailout but a signal of a new liquidity cycle. This is similar to the large-scale liquidity release after the 2020 pandemic—back then, the liquidity injection ultimately drove a significant rally.

The current market structure is different: institutional positions are relatively tight, and once prices rise and trigger a bullish trend, the risk of short sellers being forced to cover increases. Historically, a liquidity-rich environment is often accompanied by expectations of rising asset prices.

Technical Analysis: 2965 Becomes a Key Turning Point

ETH is currently oscillating around $3.14K. The 4-hour chart shows that the bullish and bearish boundaries have formed:

Resistance Levels:

• Short-term first resistance: 2965 (today’s technical turning point)
• Secondary target: 3030
• Further high zone: 3078 area

Support Levels:

• First support: 2890
• Critical bottom: 2780-2730 zone

The 4-hour MACD indicator shows the yellow and white lines above the zero axis but with weakening momentum, indicating that upward movement requires new driving force to continue. This makes whether the price can effectively break through 2965 crucial.

Price Trend Analysis

If it holds above 2965: A short-term upward trend is confirmed, with a rebound target towards 3030, then aiming for 3078.

If it fails to hold above 2965: The price will fall back to 2890 for support. If it continues downward, the bottom zone of 2780-2730 will be exposed.

Trading Recommendations

Short-term Trading: Focus on whether the 2965 breakout occurs. If it breaks through, consider light long positions with a stop loss below 2930, targeting 3030; if it fails to break, wait patiently for a pullback signal.

Long-term Holding: Investors interested in the 2780-2730 zone can consider phased positions, as this area offers a better risk-reward ratio.

Risk Warning: Avoid chasing highs and selling lows; strictly adhere to trading discipline. Market opportunities always exist, but calm decision-making is key to achieving stable gains.

ETH is still in the confirmation stage of direction in the short term, but based on liquidity expectations and technical analysis, the medium-term upward probability is relatively higher. Continue to monitor on-chain data changes and technical breakout signals.