Ethereum's performance has clearly outperformed Bitcoin recently, showing a strong bullish line with an upper wick on the monthly chart. As the price approaches the $4000 mark, many investors may choose to take profits or breakeven. After such a strong pump, the market needs some time to digest and accumulate energy in preparation for breaking through higher levels. In the long term, the potential for Ethereum to break its historical high still exists.

However, from the perspective of technical indicators on the daily chart, it is still showing a bearish trend, with no clear signs of a bottoming out yet. Investors need to closely monitor the key support level at $3500. If this level is broken, the next support might be around $3300. If the current adjustment is significant, it could even test $3000, and in extreme cases, it might reach $2800.

Given the current market conditions, investors should remain cautious and avoid excessive leverage. A reasonable risk management strategy is crucial for surviving in this highly volatile market. At the same time, it is important to be patient and wait for clearer market signals to emerge.

Although it may face adjustment pressure in the short term, the long-term outlook for Ethereum remains optimistic. With the continuous upgrades of the Ethereum network and the ongoing development of the decentralized finance (DeFi) ecosystem, its fundamentals remain strong. Investors can take this time to delve deeper into the project's fundamentals and prepare for future investment opportunities.