The Ethereum (ETH) market is facing a critical moment, with the $3650 level becoming the battleground for both bulls and bears. Currently, the price movement of ETH is showing a highly unstable state, with both sides fiercely clashing at this level.

From a technical perspective, ETH is currently facing multiple pressures. The $3686 near the middle band of the Bollinger Bands has become a formidable obstacle, with the price encountering strong resistance after multiple touches at this level. Meanwhile, the MACD indicator suggests that a downward trend may be forming, adding additional pressure on the bulls.

What is more concerning is that on-chain data shows there is a strong liquidation line for a large number of lending positions around the $3650 mark. If the price drops below this level, it could trigger a chain reaction.

In terms of market news, Grayscale Investments has recently reduced its holdings of some ETH, although the extent is not large, it has also affected market sentiment to some degree. At the same time, the U.S. Securities and Exchange Commission (SEC) has postponed its ruling on the Valkyrie ETH ETF, which has created some uncertainty in the policy.

However, not all news is negative. Ethereum founder Vitalik Buterin recently stated that the Dencun upgrade might occur earlier than expected, which has kept some investors optimistic about the future prospects of ETH. Many people recall the significant rise in ETH price after the Shanghai upgrade and hope that history will repeat itself.

For traders, $3650 is a key decision point. If the price falls below this level, it may trigger further declines; whereas if it can rebound strongly, it may open up a new round of increases. In any case, investors should closely monitor market movements and manage risks appropriately.

The current market situation is full of challenges and opportunities. Whether choosing to hold, go long, or short, investors need to carefully assess their risk tolerance and develop appropriate trading strategies. At this critical moment, rationality and calmness are more important than ever.