How is the current status of Ethereum analyzed in the 4-hour timeframe?

Ethereum is currently at the bottom of Wave 4. The analyst believes that with a double bounce occurring, there is a probability of forming a higher low, which could pave the way for price growth.

What is the meaning of a 'Sweep' movement in the Ethereum price chart?

A sweep movement refers to a situation where the price temporarily dips below key support levels, like $2,226.52, to trigger traders' stop-loss orders before immediately returning above them without consolidating at those lower levels.

What is the trading plan to confirm the bullish scenario for Ethereum?

Confirming the bullish scenario requires a 4-hour candle to close above the $2,257.79 monthly support and then cross the $2,282.77 level. If this happens, the price is expected to reach the initial target of $2,356.41.

What is a logical stop-loss for a long Ethereum position?

Based on the provided strategy, if the price of Ethereum falls below $1,800, the bullish analysis is invalidated, and the trader should exit the position to prevent further losses.

Ethereum Technical Analysis: Analyzing the 4-Hour Wave 4 Low

Current Status of Ethereum in the 4-Hour Timeframe

Currently, the price of Ethereum (ETH) has retraced to the lower levels of Wave 4. I am currently holding a long position, and in this article, I intend to share my perspective on this technical setup. For those looking to review the latest headlines related to the crypto market, please follow our website.

The Bigger Picture of Ethereum’s Trend

My analysis suggests that Ethereum sits at the bottom of Wave 4. This “Double Bounce” may be forming a “Higher Low,” a crucial indicator of potential trend reversal. In my experience, these double fluctuations at the end of Wave 4 often flush out over-leveraged traders, clearing the path for price growth. For a better understanding of these concepts, you can utilize our educational analysis section.

What the Chart Reveals

After breaking out of a descending wedge pattern, the price rallied but then retraced the entire move in a single large 4-hour candle. This movement pushed the price through the $2,282.77 low and the monthly support at $2,257.79. Currently, the price holds above the daily order block—a zone where buyers have historically stepped in. The price touched the $2,226.52 level multiple times without consolidating below it. This is a “Sweep” movement; the price briefly dipped below the low to trigger stop-loss orders before reversing. For more information, please visit our news source.

Trading Plan: The “If-Then” Strategy

If a 4-hour candle closes above the $2,257.79 monthly support and subsequently breaks above $2,282.77, the double bounce is confirmed, and I expect the price to reach the Wave 4 target at $2,356.41.
If the price continues to touch below $2,226.52 without consolidating above the monthly support, Wave 4 is still in progress, and I will wait patiently.
If the price drops below $1,800, my analysis is invalidated, and I must exit the position.

Price Targets and Risk Management

My ultimate target for this move is $3,844. This is a long-term journey, and I expect it to take weeks or months to complete. Please remember that this analysis is not financial advice. In long-term trading, losses are possible before reaching profit, so manage your risk carefully to ensure that your potential loss remains minimal if the analysis proves incorrect.