ETH's recent fluctuations seem chaotic, but in fact, there is a hidden force pushing prices higher.

From a news perspective, the actions of the Federal Reserve are worth paying attention to. According to feedback, the liquidity injection has reached 16 billion, and this wave of release has just begun, with further intensity expected to increase. This reminds many of the large liquidity injections after the 2020 pandemic—subsequently, the market experienced a significant rally.

However, the background this time is indeed different. The institutional holdings structure has changed, and the distribution of chips is no longer as concentrated as before. When liquidity is abundant, if prices start to rise, short sellers will face forced liquidation. The longer the delay, the deeper the losses, which is the core mechanism of a short squeeze.

From a technical perspective, 2965 is the key dividing line today. If this level can hold steady, the upward space will open; otherwise, it will be necessary to look for support below.

For short-term traders, the 2965 level must be closely watched. Once it stabilizes, consider a light long position, set a stop loss below 2930, and target around 3030 on the upside.

No matter what trading strategy is adopted, the trap of chasing highs and selling lows must be avoided. In such a volatile environment, being hit from both sides is common. Staying rational and not being led by short-term fluctuations is the correct approach to handle the current market.