Ethereum (ETHUSDT) Update; Price Action & Elliott Wave Analysis
ETHUSDT is currently trading inside a strong daily supply zone near the $4,000 level. This level has shown significant rejection in the past, as seen earlier this year. Using Elliott Wave Theory, ETH appears to be in an impulsive wave 3 on the daily timeframe.
Current Wave in Progress
Supply & Demand Zones
Supply Zone (Potential Rejection): $4,000–$4,096
If ETH fails to break above, we may see Wave 4 retracing back to the nearest demand zone.
($3,152–$3,018) RBD.
Possible Trade Setups:
Bullish Breakout Scenario:
Entry: $4,100 (Break above the supply zone and recent highs).
Stop Loss: $3,950 (Below supply zone).
Take Profit: $6,400 (Projected Wave 5 target).
Risk-Reward: ~1:6 (depending on execution).
Rejection Scenario (Wave 4 Pullback):
Entry: Around $3,152 (Demand zone).
Stop Loss: $3,000 (Below demand zone).
Take Profit 1: $4,096 (Re-test of supply zone).
Risk-Reward: ~1:3.
Take Profit 2: $6,400 (Projected Wave 5 target).
Risk-Reward: ~1:15.
"Be patient and wait for confirmation; the market rewards discipline, not impulsive actions."
"Always use a stop loss to manage risk."
"The market moves in cycles, and history often rhymes."
"Let profits run, but cut losses quickly." – Jesse Livermore
Trade Safe!
⚠️ Disclaimer
This analysis is for educational purposes only and should not be considered financial advice. Always perform your own research and consult with a professional before trading. Trading involves risk, and past performance does not guarantee future results.
Current Wave in Progress
- we are currently in Wave 3 of the Elliott Wave structure.
- A break above $4,096 could signal a continuation of Wave 3
- By overlaying a ghost of the previous Elliott Wave, the current wave aligns well, and the projected Wave 5 target could extend to around $6,400.
Supply & Demand Zones
Supply Zone (Potential Rejection): $4,000–$4,096
If ETH fails to break above, we may see Wave 4 retracing back to the nearest demand zone.
($3,152–$3,018) RBD.
Possible Trade Setups:
Bullish Breakout Scenario:
Entry: $4,100 (Break above the supply zone and recent highs).
Stop Loss: $3,950 (Below supply zone).
Take Profit: $6,400 (Projected Wave 5 target).
Risk-Reward: ~1:6 (depending on execution).
Rejection Scenario (Wave 4 Pullback):
Entry: Around $3,152 (Demand zone).
Stop Loss: $3,000 (Below demand zone).
Take Profit 1: $4,096 (Re-test of supply zone).
Risk-Reward: ~1:3.
Take Profit 2: $6,400 (Projected Wave 5 target).
Risk-Reward: ~1:15.
"Be patient and wait for confirmation; the market rewards discipline, not impulsive actions."
"Always use a stop loss to manage risk."
"The market moves in cycles, and history often rhymes."
"Let profits run, but cut losses quickly." – Jesse Livermore
Trade Safe!
⚠️ Disclaimer
This analysis is for educational purposes only and should not be considered financial advice. Always perform your own research and consult with a professional before trading. Trading involves risk, and past performance does not guarantee future results.
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.