The Ethereum market is at a critical moment. Although it has recently rebounded from the support level in the range of 4000-4100, it is now approaching the downward trend line, which is an important technical resistance level.

At this time, investors need to stay cautious. For existing long positions, it is wise to consider taking moderate profits. For traders with a higher risk tolerance, it may even be worth considering trying to short in the short term at this position.

However, there is still uncertainty in the market direction. If Ethereum breaks through the descending trend line, it may usher in a new round of increases, at which point it may be worth considering re-establishing long positions. Conversely, if it fails to break through, the price may retreat to around 4000, which will provide new low-price buying opportunities.

In addition to the technical aspects, the market is also closely watching Powell's speech on Friday evening. This could become a key factor influencing the short-term market direction. If Powell shows a more dovish stance, it may increase the likelihood of a rate cut in September, thereby boosting the market. Conversely, if the remarks lean towards a hawkish tone, it could put some pressure on the market.

It is worth noting that the market seems to have already digested some of the negative factors in advance. Even if Powell's speech leans towards a hawkish tone, the potential downside for the market may be relatively limited. On the contrary, this may provide investors with a better opportunity to buy at lower prices.

Overall, the current market situation is complex, and investors should closely monitor changes in both technical and news aspects, adjusting their strategies flexibly based on market reactions. Whether taking a long or short position, stop-loss orders should be set at key price levels to control risks. In this uncertain market environment, maintaining rationality and patience is crucial.