Introduction: Ethereum on the $3,000 Test
The cryptocurrency market has experienced high volatility following a notable bull run, and Ethereum (ETH/USD) is currently navigating a significant correction. The asset retreated sharply from its peak near $4,953 down to a recent low around $2,943. The core question on traders' minds is: Has the correction run its course?
A technical analysis of Ethereum's 4-hour chart reveals a bullish harmonic pattern known as the "Bullish Shark," which may offer critical clues, pointing to a vital potential reversal zone (PRZ).
Technical Analysis: Bullish Shark on the 4H Chart
The "Bullish Shark" is a complex harmonic pattern that suggests a potential Bullish Reversal after an extended downtrend. The pattern involves five swing points (O-X-A-B-C) and is considered complete when point C falls within the potential reversal zone (PRZ).
📐 Pattern Structure and Critical Levels
Based on the provided Ethereum chart, the pattern shows the following key levels:
Point O (Start): Around $2,974.
Point X (Initial High): Around $3,578.
Point A: Around $3,022.
Point B: Around $3,676.
Point C (Potential Reversal): Recent low around $2,943.
🔑 The Potential Reversal Zone (PRZ)
The classic Bullish Shark pattern requires point C to fall between the 1.13 and 1.618 Fibonacci extensions of the O-X leg, and it typically must break below point O.
In this case, the price touched the 1.272 level (around $2,974) and extended slightly lower to the $2,943 low before showing a positive reaction (a bullish reversal candle/hammer).
Significance: The price action around the $2,943 - $2,975 range suggests this area is acting as a critical support and potential buying zone. The slight deviation from the exact pattern rules is often accepted if the price reacts strongly to the key Fibonacci levels within the PRZ, as seen here with the reaction off the low.
🚀 Potential Upside Targets
If the Bullish Shark pattern validates and the market confirms the reversal, potential short-term upside targets, based on the B-C leg Fibonacci retracements, include:
Target 1 (0.50 Retracement): Around $3,207.
Target 2 (0.618 Retracement): Around $3,265.
A successful breakthrough and consolidation above these levels would pave the way for a retest of the resistance at Point B (near $3,676).
🛑 Invalidation Level (Stop Loss)
The clear level of defense for this bullish scenario is the recent low (Point C). A decisive move and sustained close below $2,943 would invalidate the Bullish Shark pattern and likely signal a continuation of the correction towards lower levels, such as the 1.618 extension of O-X (around $2,853).
📈 Conclusion and Market Outlook
The current period is characterized by the market seeking a base after a sharp correction. Technically, Ethereum has found support precisely in the range represented by the Bullish Shark's Potential Reversal Zone.
Key Takeaway: As long as Ethereum holds above $2,943 and consolidates above $3,000, the potential for the correction to end and a new bullish phase to begin remains intact.
Further Confirmation: Traders should look for confirmation candles and a successful push above $3,200-$3,300 to confirm the initial upward momentum.
⚖️ Extended Legal Disclaimer
This disclosure is an integral part of this article. Please read carefully:
1. Information Only: The information provided in this analysis, including the Bullish Shark pattern interpretation, is intended for educational and informational purposes only. It does not constitute investment advice, a recommendation to engage in trading activities, professional opinion, or a substitute for personalized financial or investment consultation.
2. High Risk Warning: Trading cryptocurrencies and derivative financial instruments is extremely risky and involves a significant risk of losing your entire investment capital. Prices are highly volatile and can change dramatically. Investing in crypto is suitable only for those who fully understand these risks and are prepared to accept them.
3. Reader Responsibility: Any trading or investment decision made by the reader, based on or inspired by this article, is done so at the reader's sole and exclusive risk and responsibility. The author and the blog owners are not liable for any losses or damages incurred as a result of using this information.
4. Risk Management is Key: Do not invest money you cannot afford to lose. It is essential to employ proper risk management and use appropriate protective orders (Stop Loss) in every trade. Technical patterns may fail or be invalidated. Always consult with a licensed financial advisor before making investment decisions.
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