Recently, the Ethereum (ETH) market has experienced a thrilling roller coaster ride. The price of ETH, hovering around $4,425, nearly fell below the $4,200 mark, and if it does, it could trigger a chain liquidation effect of up to $600 million. However, long positions investors managed to turn the tide at a critical moment, temporarily stabilizing the situation.

Currently, the psychological barrier of $4,500 has become the main battleground for fierce clashes between bulls and bears. Bull investors are striving to break through this resistance level, while bears are hoping for a market downturn. In this tug-of-war, multiple factors are influencing the direction of the market.

On the optimistic side, the potential approval news of the Ethereum ETF has sparked heated discussions in the market, injecting strong confidence into long positions. In addition, the continuous growth in the decentralized finance (DeFi) sector has also provided strong support for ETH. If it can break through the resistance at $4,500, ETH is expected to launch an assault towards the $4,800 to $5,000 range.

However, pessimistic factors cannot be ignored. Macroeconomic pressures, inflation concerns, and the strengthening of the dollar have all put significant pressure on risk assets like Ethereum. If ETH falls below the support level of $4,200, it may trigger a new wave of sell-offs, and the price could retrace to levels of $4,000 or even $3,600.

Currently, the sentiment in the cryptocurrency market is highly volatile, and investors need to closely monitor changes in various factors. Whether it is the potential approval of an ETF or the evolution of the global economic situation, both could have a significant impact on Ethereum's price movements. In this uncertain market environment, investors should remain rational and manage risks to cope with the various market changes that may arise.