This wave of ETH correction, to put it plainly, is the market digesting the "good news" and then spitting it out again.

When I was watching the market this morning, I felt a sudden pang—ETH was still hovering around 3450 the day before, but today it dropped straight through 3200, touching a low of 3194. This kind of surge followed by a sharp crash is much more aggressive than the expected sideways consolidation. The root cause still goes back to the late-night drama at the Federal Reserve: a 25 basis point rate cut in itself is not an issue, but Powell’s remark that "the pace of future rate cuts will slow down" was like a bucket of ice water, directly dousing the enthusiasm for capital inflow.

Looking back at last week’s market action makes it even more ironic. On the day the rate cut news was announced on the 11th, ETH shot from 3324 straight up to 3667, nearly an 8% increase in 24 hours, with all kinds of buy signals flying around. But in retrospect, that surge was a classic "trap" — on-chain data shows that yesterday, the long contracts chased higher above 3500, and today, over 60 million USD of leveraged longs were liquidated. In plain words, the market had already priced in the expectations ahead of time, and when the actual news arrived, it instead became a signal for profit-taking and a rush to exit.

From a technical perspective, the outlook is also not optimistic. ETH is currently stuck between 3150 and 3200, RSI has fallen to 47, and the KDJ indicator is turning downward; the short-term selling pressure has not yet fully released. At this point,