ETH/USD Technical Analysis (30-Min Chart)
🗓️ Chart Date: May 6, 2025
🧠 Author: Royalfxsignal
🟨 Chart Pattern: Rectangle Pattern (Bearish Bias)
🧱 Structure Explanation:
This ETH/USD chart shows a Rectangle Pattern, also known as a Range-Bound Consolidation. Price has been oscillating between a defined resistance zone and a support zone, indicating indecision in the market. However, given the prior bearish trend, the pattern suggests a bearish continuation is likely.
🔹 Key Chart Levels:
Level Value (USD) Description
🔼 Resistance ~1,815–1,820 Top of the rectangle zone (multiple rejections)
🔽 Support ~1,794–1,798 Bottom of the rectangle (held twice)
🎯 Target 1,763.0 Bearish measured move target
💡 Take Profit (TP) 1,783.1 Intermediate target for partial exit
🛑 Stop Loss (SL) 1,829.5 Above rectangle resistance (invalidates setup)
🔄 Price Action Breakdown:
Prior Trend:
The price entered this consolidation after a clear downtrend, indicating the rectangle is likely a bearish continuation pattern.
Rectangle Formation:
Multiple touches on both upper resistance and lower support define the rectangle.
The range suggests accumulation/distribution before a breakout.
Highlighted Swing Points:
Price moved within the box, forming lower highs and equal lows.
The most recent bounce off the lower edge aligns with prior structure, showing weak bullish momentum.
Current Position:
Price is hovering near the middle of the range, testing minor resistance after another bounce.
A move below the lower support could trigger a breakout trade.
📈 Trade Setup Strategy:
🔽 Short Setup:
Entry Trigger:
Enter short on a confirmed break and close below $1,794.
Take Profit (TP1):
$1,783.10 — minor support zone, offers partial profit-taking.
Take Profit (TP2):
$1,763.00 — full measured move of rectangle projected downward.
Stop Loss (SL):
$1,829.50 — above rectangle highs and recent lower high swing.
🎯 Measured Move Calculation:
The rectangle's height is approximately:
$1,820 (resistance) – $1,794 (support) = $26
Projected downward:
Breakout zone ($1,794) – $26 = Target at $1,768, which aligns well with your $1,763 target area.
🧩 Risk Management:
Risk-to-Reward Ratio:
Approximately 1:2 to 1:3, depending on entry precision and TP level chosen.
Trade Confirmation:
Look for a strong bearish candle close below the support for confirmation before entering.
Avoid Early Entries:
Do not enter inside the range — wait for clean breakout or retest.
📌 Conclusion:
“ETH/USD is consolidating within a defined range after a strong bearish leg. A breakdown below $1,794 may confirm a rectangle continuation pattern, offering a short opportunity toward $1,763. The setup offers favorable risk-to-reward with a stop loss above $1,829.”
🗓️ Chart Date: May 6, 2025
🧠 Author: Royalfxsignal
🟨 Chart Pattern: Rectangle Pattern (Bearish Bias)
🧱 Structure Explanation:
This ETH/USD chart shows a Rectangle Pattern, also known as a Range-Bound Consolidation. Price has been oscillating between a defined resistance zone and a support zone, indicating indecision in the market. However, given the prior bearish trend, the pattern suggests a bearish continuation is likely.
🔹 Key Chart Levels:
Level Value (USD) Description
🔼 Resistance ~1,815–1,820 Top of the rectangle zone (multiple rejections)
🔽 Support ~1,794–1,798 Bottom of the rectangle (held twice)
🎯 Target 1,763.0 Bearish measured move target
💡 Take Profit (TP) 1,783.1 Intermediate target for partial exit
🛑 Stop Loss (SL) 1,829.5 Above rectangle resistance (invalidates setup)
🔄 Price Action Breakdown:
Prior Trend:
The price entered this consolidation after a clear downtrend, indicating the rectangle is likely a bearish continuation pattern.
Rectangle Formation:
Multiple touches on both upper resistance and lower support define the rectangle.
The range suggests accumulation/distribution before a breakout.
Highlighted Swing Points:
Price moved within the box, forming lower highs and equal lows.
The most recent bounce off the lower edge aligns with prior structure, showing weak bullish momentum.
Current Position:
Price is hovering near the middle of the range, testing minor resistance after another bounce.
A move below the lower support could trigger a breakout trade.
📈 Trade Setup Strategy:
🔽 Short Setup:
Entry Trigger:
Enter short on a confirmed break and close below $1,794.
Take Profit (TP1):
$1,783.10 — minor support zone, offers partial profit-taking.
Take Profit (TP2):
$1,763.00 — full measured move of rectangle projected downward.
Stop Loss (SL):
$1,829.50 — above rectangle highs and recent lower high swing.
🎯 Measured Move Calculation:
The rectangle's height is approximately:
$1,820 (resistance) – $1,794 (support) = $26
Projected downward:
Breakout zone ($1,794) – $26 = Target at $1,768, which aligns well with your $1,763 target area.
🧩 Risk Management:
Risk-to-Reward Ratio:
Approximately 1:2 to 1:3, depending on entry precision and TP level chosen.
Trade Confirmation:
Look for a strong bearish candle close below the support for confirmation before entering.
Avoid Early Entries:
Do not enter inside the range — wait for clean breakout or retest.
📌 Conclusion:
“ETH/USD is consolidating within a defined range after a strong bearish leg. A breakdown below $1,794 may confirm a rectangle continuation pattern, offering a short opportunity toward $1,763. The setup offers favorable risk-to-reward with a stop loss above $1,829.”
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.