ETH/USD Technical Analysis (30-Min Chart)
🗓️ Chart Date: May 6, 2025
🧠 Author: Royalfxsignal
🟨 Chart Pattern: Rectangle Pattern (Bearish Bias)
🧱 Structure Explanation:
This ETH/USD chart shows a Rectangle Pattern, also known as a Range-Bound Consolidation. Price has been oscillating between a defined resistance zone and a support zone, indicating indecision in the market. However, given the prior bearish trend, the pattern suggests a bearish continuation is likely.
🔹 Key Chart Levels:
Level Value (USD) Description
🔼 Resistance ~1,815–1,820 Top of the rectangle zone (multiple rejections)
🔽 Support ~1,794–1,798 Bottom of the rectangle (held twice)
🎯 Target 1,763.0 Bearish measured move target
💡 Take Profit (TP) 1,783.1 Intermediate target for partial exit
🛑 Stop Loss (SL) 1,829.5 Above rectangle resistance (invalidates setup)
🔄 Price Action Breakdown:
Prior Trend:
The price entered this consolidation after a clear downtrend, indicating the rectangle is likely a bearish continuation pattern.
Rectangle Formation:
Multiple touches on both upper resistance and lower support define the rectangle.
The range suggests accumulation/distribution before a breakout.
Highlighted Swing Points:
Price moved within the box, forming lower highs and equal lows.
The most recent bounce off the lower edge aligns with prior structure, showing weak bullish momentum.
Current Position:
Price is hovering near the middle of the range, testing minor resistance after another bounce.
A move below the lower support could trigger a breakout trade.
📈 Trade Setup Strategy:
🔽 Short Setup:
Entry Trigger:
Enter short on a confirmed break and close below $1,794.
Take Profit (TP1):
$1,783.10 — minor support zone, offers partial profit-taking.
Take Profit (TP2):
$1,763.00 — full measured move of rectangle projected downward.
Stop Loss (SL):
$1,829.50 — above rectangle highs and recent lower high swing.
🎯 Measured Move Calculation:
The rectangle's height is approximately:
$1,820 (resistance) – $1,794 (support) = $26
Projected downward:
Breakout zone ($1,794) – $26 = Target at $1,768, which aligns well with your $1,763 target area.
🧩 Risk Management:
Risk-to-Reward Ratio:
Approximately 1:2 to 1:3, depending on entry precision and TP level chosen.
Trade Confirmation:
Look for a strong bearish candle close below the support for confirmation before entering.
Avoid Early Entries:
Do not enter inside the range — wait for clean breakout or retest.
📌 Conclusion:
“ETH/USD is consolidating within a defined range after a strong bearish leg. A breakdown below $1,794 may confirm a rectangle continuation pattern, offering a short opportunity toward $1,763. The setup offers favorable risk-to-reward with a stop loss above $1,829.”
🗓️ Chart Date: May 6, 2025
🧠 Author: Royalfxsignal
🟨 Chart Pattern: Rectangle Pattern (Bearish Bias)
🧱 Structure Explanation:
This ETH/USD chart shows a Rectangle Pattern, also known as a Range-Bound Consolidation. Price has been oscillating between a defined resistance zone and a support zone, indicating indecision in the market. However, given the prior bearish trend, the pattern suggests a bearish continuation is likely.
🔹 Key Chart Levels:
Level Value (USD) Description
🔼 Resistance ~1,815–1,820 Top of the rectangle zone (multiple rejections)
🔽 Support ~1,794–1,798 Bottom of the rectangle (held twice)
🎯 Target 1,763.0 Bearish measured move target
💡 Take Profit (TP) 1,783.1 Intermediate target for partial exit
🛑 Stop Loss (SL) 1,829.5 Above rectangle resistance (invalidates setup)
🔄 Price Action Breakdown:
Prior Trend:
The price entered this consolidation after a clear downtrend, indicating the rectangle is likely a bearish continuation pattern.
Rectangle Formation:
Multiple touches on both upper resistance and lower support define the rectangle.
The range suggests accumulation/distribution before a breakout.
Highlighted Swing Points:
Price moved within the box, forming lower highs and equal lows.
The most recent bounce off the lower edge aligns with prior structure, showing weak bullish momentum.
Current Position:
Price is hovering near the middle of the range, testing minor resistance after another bounce.
A move below the lower support could trigger a breakout trade.
📈 Trade Setup Strategy:
🔽 Short Setup:
Entry Trigger:
Enter short on a confirmed break and close below $1,794.
Take Profit (TP1):
$1,783.10 — minor support zone, offers partial profit-taking.
Take Profit (TP2):
$1,763.00 — full measured move of rectangle projected downward.
Stop Loss (SL):
$1,829.50 — above rectangle highs and recent lower high swing.
🎯 Measured Move Calculation:
The rectangle's height is approximately:
$1,820 (resistance) – $1,794 (support) = $26
Projected downward:
Breakout zone ($1,794) – $26 = Target at $1,768, which aligns well with your $1,763 target area.
🧩 Risk Management:
Risk-to-Reward Ratio:
Approximately 1:2 to 1:3, depending on entry precision and TP level chosen.
Trade Confirmation:
Look for a strong bearish candle close below the support for confirmation before entering.
Avoid Early Entries:
Do not enter inside the range — wait for clean breakout or retest.
📌 Conclusion:
“ETH/USD is consolidating within a defined range after a strong bearish leg. A breakdown below $1,794 may confirm a rectangle continuation pattern, offering a short opportunity toward $1,763. The setup offers favorable risk-to-reward with a stop loss above $1,829.”
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Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.