Chart analysis
On the ETH/USD (30-minute) chart, a corrective wave IV is forming after an impulsive rise.
Key levels:
Support: $1,670.58 (38.2% Fibonacci retracement of wave iii)
Resistance: $1,833.33 (50% Fibonacci retracement)
Elliott Wave Forecast
Current phase: Correction Wave IV is ending, preparing for the start of Wave V (impulse wave)
Targets:
Upon breaking $1,833.33 — growth to $2,017.05 (161.8% Fibonacci extension)
Upon breaking support at $1,670.58 — decline to $1,477.67 (78.6% Fibonacci level)
Microstructural signals
Liquidity: Concentration of buy orders in the $1,700–$1,750 zone (confirms support level)
Volumes: Increasing volumes when closing above $1,833.33 enhances the likelihood of a bullish scenario
Trading strategy
Long position:
Trigger: Closing the candle above $1,833.33 with volume > $32.5 million.
Take Profit: $2,017.05 (161.8% Fibonacci)
Stop Loss: $1,770 (current price)
Short position:
Trigger: Breaking support at $1,670.58 with liquidity < $20 million.
Take Profit: $1,477.67 (78.6% Fibonacci)
Stop Loss: $1,733.84 (current price)
Risk management
Position size: No more than 2% of the portfolio.
News: Watch for the Fed's decisions (May 14-15) and updates on Ethereum Pectra Mainnet.
Conclusion
ETH is at a crossroads: breaking $1,833.33 will trigger a new upward impulse, while a drop below $1,670.58 will deepen the correction. Use a combination of wave analysis and microstructure for precise entry.
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