ETH/USD – Harmonic BAT Pattern & Morning Star Confirmation

 

📌 Attached: A Chart Highlighting the 4-Hour BAT Pattern & Morning Star Confirmation

Technical Overview & Market Context

Ethereum (ETH/USD) has been forming a bullish BAT harmonic pattern on the 4-hour timeframe, a well-known reversal structure in harmonic trading that signals potential trend exhaustion and a buying opportunity. As price reached the potential reversal zone (PRZ) of the BAT pattern, we awaited confirmation for the CD leg to validate the setup.

Now, we have received that confirmation in the form of a Morning Star candlestick pattern on the 4-hour chart—one of the strongest bullish reversal signals in technical analysis. This dual confluence significantly increases the probability of a sustained upward move.

Why This Setup is Significant

✅ BAT Pattern PRZ – Ethereum reached the Fibonacci-determined reversal zone for the BAT pattern, indicating a high-probability bullish reaction.
✅ Morning Star Confirmation – A classic three-candle reversal formation at the PRZ, signaling the exhaustion of sellers and renewed bullish control.
✅ Increased Volume – The Morning Star pattern emerged alongside rising buy-side volume, further validating the setup.
✅ Favorable Risk-Reward – The structured stop-loss and target placement offer an optimized risk-reward ratio.

Trade Plan & Key Levels to Watch

📌 Entry Point: Upon confirmation of the 4-hour Morning Star at the PRZ.
📌 Stop-Loss: Below the Morning Star low to manage risk efficiently.
📌 Target 1: Key Fibonacci retracement levels and prior resistance near $2,250.
📌 Target 2: Extended move toward $2,450 if momentum continues.
📌 Risk Factors: Broader market sentiment, Bitcoin correlation, and macroeconomic events.

Legal Disclaimer

This analysis is for informational and educational purposes only and should not be considered financial advice. The author is not a licensed financial advisor, portfolio manager, or investment consultant. Trading and investing in cryptocurrencies involve significant risk, including potential capital loss. Past performance does not guarantee future results. Investors should conduct independent research or consult a certified professional before making investment decisions. The author assumes no responsibility for financial losses resulting from reliance on this analysis.

🚀 Will Ethereum capitalize on this bullish formation and surge toward key resistance levels? Stay tuned for further updates! 📈