Ethereum Pulls Back After Surging Above Upper Band

Zhang Lihui, an experienced Ethereum analyst, provided market analysis and trading recommendations for the popular cryptocurrency on August 28. According to Zhang, Ethereum surged above its upper band on the 1-hour chart in the evening before facing selling pressure and moving downward.

The MACD indicator shows increasing volume below the zero axis, with the fast and slow lines turning downwards after a bearish crossover. Both the KDJ and RSI have turned down, clearly signaling a short-term pullback for Ethereum.

Zhang suggests that those who have entered short positions at higher levels can continue to hold, focusing on a potential breakdown between the lower band and the MA120 range below 2400. If the 4-hour middle band and the MA30 range fail to hold, it's possible to continue targeting the lower band.

Zhang also warns that a bearish reversal signal is gradually forming on the daily chart, so there is always a risk of a sudden drop. The main strategy should remain focused on shorting high levels, while supporting short-term longs at key support zones.