The price has fallen below the psychological level of 3800, with moving averages showing a bearish arrangement and strong downward momentum. The U.S. Senate's DeFi regulatory proposal has intensified market concerns, leading to continuous outflows of on-chain funds. A short-term rebound requires first reclaiming the 3850-3900 region.

Rebound opportunity: The 4-hour RSI has entered the oversold zone, indicating a technical correction is needed. If a bullish engulfing or long lower shadow forms within the next 1-2 days, it may trigger a rebound to 3950.
The current price of 3728 is not suitable for short positions, as the risk-reward ratio is relatively poor.
Aggressive traders can take a small long position (position ≤3%), stop loss below 3680, target 3850.
Cautious investors are waiting to see a volume breakout above 3800 or a fall below 3680 before taking action in the direction of the trend. $ETH