Ethereum Price Analysis: Potential Selling Opportunity for ETH/USD Trading Pair

Elliott Wave Analysis for ETHUSD

ETHUSD is currently showing a pattern suggesting a SHORT setup. The chart indicates the completion of a corrective wave (b) and the potential beginning of an impulsive wave (c) downwards, highlighted by a recent pivot at a Fibonacci retracement level.

Market Outlook

The failed attempt to break higher reinforces the bearish sentiment. Wave (c) is anticipated to be at least equal to wave (a), with Fibonacci extensions indicating possible targets for the downward movement.

Trade Opportunity

Given the cryptocurrency market's volatility, coupled with regulatory news and tech sector uncertainties, the setup appears favorable for a SHORT trade. Traders eyeing this position should seek confirmation as the price drops below the end of wave (b), with a stop-loss order positioned above the recent high for risk management.

Profit Targets

Profit targets can be set at the 1.0 and 1.618 Fibonacci extension levels from wave (a) to (b), enabling traders to benefit from the expected descent. Vigilantly monitoring price action and being prepared to adjust to new market developments are crucial for this trade.