6 days ago

ETH/USD 4H: Downtrend with Key Support and Resistance

ETH/USD 4H: Downtrend with Key Support and Resistance
Chart Analysis for ETH/USD (Ethereum) on a 4-Hour Timeframe
1. Identify Trends using Dow Theory
Primary Trend:

The current primary trend is a downtrend, characterized by lower highs and lower lows.

Volume Confirmation:

High-Volume Nodes (HVNs): Significant volume concentration around price levels 3,100 and 3,200, indicating strong support/resistance zones.

Low-Volume Nodes (LVNs): Lower volume areas around 3,050 and 3,250, suggesting potential price gaps or less interest at these levels.

2. Label Elliott Wave Structures
Impulse Waves (1-5):

Wave 1: From 3,300 to 3,050

Wave 2: From 3,050 to 3,200

Wave 3: From 3,200 to 2,950

Wave 4: From 2,950 to 3,100

Wave 5: From 3,100 to 2,900 (current price)

Corrective Waves (A-B-C):

Wave A: At 2,900, potential further decline.

Wave B: Retracement upwards.

Wave C: Continuation of the decline.

Validation Using Fibonacci:

Key Fibonacci levels are marked at 0.705 (3,260.598), 0.618 (3,231.4008), 0.5 (3,191.8), and 0.382 (3,152.1992).

Volume Profile Integration:

Assess the strength of each wave by observing volume concentration during each wave.

3. Apply Smart Money Concepts (SMC)
Liquidity Zones:

Point of Control (POC): Around 3,100, indicating significant price acceptance.

Value Areas: Between 3,100 and 3,200.

Break of Structure (BOS):

BOS noted at 2,900, indicating a potential trend shift.

Stop Hunts:

Possible stop hunts around the 2,900 level, where the price briefly dips below support.

Accumulation and Distribution:

Using Volume Profile to locate areas of accumulation and distribution.

4. Formulate Buy/Sell Strategies
Buy Strategy:
Entry: Around 2,900 (support level and potential stop hunt area).
TP1: 3,100 (POC level).
TP2: 3,200 (HVN).
SL: Below 2,900 (e.g., 2,800).

Sell Strategy:
Entry: Around 3,200 (resistance level and HVN).
TP1: 3,100 (POC level).
TP2: 2,900 (support level).
SL: Above 3,200 (e.g., 3,300).
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This comprehensive analysis incorporates multiple advanced strategies to identify potential trading opportunities for Ethereum, incorporating Dow Theory, Elliott Wave Theory, Smart Money Concepts (SMC), and Volume Profile analysis. If you have any further questions or need more details, feel free to ask!

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