Ethereum (ETH) Market Analysis & Trade Setup — May Update
Ethereum is currently showing signs of a potential upside reversal from the April low. However, the rally so far has been only a three-wave structure, which aligns with a possible A wave to the upside. This suggests we may now see a B wave pullback before a potential C wave rally.
At this stage, it's important to note that the larger move could develop into an ABC correction rather than an impulsive uptrend. We continue to track these structures, and they will evolve as more price data comes in.
Key Support Zones
Micro Support Zone: $1,762 to $1,733
Main Support Zone for B Wave: $1,477 to $1,670
As long as ETH stays above $1,762, there is still a chance for another leg higher. However, a break below $1,762 increases the likelihood of a deeper correction.
A decisive break below $1,733 would invalidate the bullish micro scenario and suggest that the B wave correction is fully in play.
Trade Setup
🟢 Long Position (Aggressive)
Entry: On bounce confirmation above $1,762
Targets:
$1,820 (near-term resistance)
$1,880 (possible C wave completion zone)
Stop Loss: Below $1,730
🔴 Short Position (Conservative)
Entry: On breakdown below $1,733
Targets:
$1,670
$1,570
Stop Loss: Above $1,765
Bias
Neutral to slightly bearish in the short term, unless ETH holds $1,762 and initiates a confirmed bounce. Ethereum has been lagging Bitcoin's structure, and broader market weakness (especially if Bitcoin corrects) could drag ETH lower.
Key Levels to Watch
Bullish Trigger: Break and hold above $1,820
Breakdown Trigger: Fall below $1,733
Main Support Zone: $1,477 - $1,670
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