The Ethereum market experienced significant volatility today. After reaching a new high of 4794, the price of the coin saw a pullback, dropping to around 4451 at one point. As of the time of writing, the trading price of Ethereum is around 4560, with an intraday decline of 3.95%.

It is noteworthy that the trend of Ethereum shows synchronization with Bitcoin, but the specific performance is slightly different. Before 2 PM that day, Ethereum was in a fluctuating upward trend, but began to decline in the afternoon. This turning point coincided exactly with the release of the U.S. Producer Price Index (PPI) data, and subsequently accelerated downward.

From a short-term technical analysis, the current Ethereum price is at the point of balance between bulls and bears. Although it retraced to around 4451 yesterday, market analysis suggests that there is still room for a fall below. Therefore, investors need to remain cautious and closely monitor market trends.

Pay close attention to the resistance level on the 4-hour chart. If the price can break through the resistance at 4560, it may indicate a stabilization upward, and there is even the possibility of testing recent highs again. Conversely, if it fails to break through that resistance level, it may continue to pull back, with the next support level possibly around 4380.

The current cryptocurrency market is in a sensitive period, and investors should closely monitor global economic data and policy changes, while also managing risks effectively. At the same time, Ethereum, as the leader of smart contract platforms, still has promising long-term development prospects.