Ethereum (ETH) recent trend has drawn the attention of investors. From a technical perspective, ETH is currently in a key consolidation range. Earlier, ETH fell below the flag support level of $3687, followed by a rebound. However, in the afternoon, the market fell back inside the flag, showing a choppy pattern.

Currently, ETH is facing dual resistance: the upper boundary of the flag pattern and the resistance level at 3875 USD. Multiple tests of the upper boundary of the flag pattern have failed, indicating insufficient upward momentum. If ETH cannot break through the 3875 USD level, it may test the 3687 USD support level again. If this support level is broken, lower lows may occur on the hourly level, leading to further downward pressure.

It is worth noting that there are some mixed signals on the 4-hour chart. Although there is a bullish engulfing pattern, the lack of corresponding volume support reduces the reliability of this signal. The subsequent evening star pattern then releases a bearish signal. These contradictory technical indicators remind investors to remain cautious.

For short-term traders, a breakout at $3845 may present a long opportunity, while a breakdown at $3812 could signal a short position. However, whether going long or short, it's essential to closely monitor changes in trading volume and set reasonable stop-losses.

Overall, the key breakout point for ETH remains at $3875. Only by breaking through this level can the upward space be opened; otherwise, it may continue to oscillate within the current range. Investors should remain vigilant and avoid making trading decisions based solely on a single technical indicator, but should consider multiple factors comprehensively. In the current uncertain market environment, risk management is particularly important.