🟣 Ethereum (ETH/USD) – Breakdown From Rising Wedge | Bearish Setup Targeting 1418 & 1432
"The market breathes through structure. Recognizing those structures before others is where the edge lies."
🧠 Market Context & Big Picture
Ethereum (ETH/USD) has been consolidating within a wide sideways range after a sharp drop that occurred in early April. Following this downtrend, a temporary recovery was seen, leading to the formation of a Rising Wedge, a classically bearish continuation/reversal pattern.
This setup shows price action losing momentum after an aggressive bounce from support and forming a lower-high structure, signaling potential bearish pressure resuming.
🔍 Chart Pattern Analysis
🔺 Rising Wedge Formation (Bearish Reversal)
A Rising Wedge is characterized by ascending trendlines with price making higher highs and higher lows, but within a narrowing range — hinting at buyer exhaustion.
The wedge pattern formed between April 10 to April 15, building just below a strong horizontal resistance.
The pattern broke down, confirming bearish sentiment as the price failed to break higher and sellers stepped in aggressively.
🟪 Key Technical Levels
🔴 Resistance Zone – $1,640 to $1,679
The top of the Rising Wedge aligns with this zone.
Multiple rejection wicks and bearish candlesticks show significant selling pressure.
Serves as the invalidator of this short setup — price closing above this level would negate the bearish pattern.
🟩 Support Zone – $1,480 to $1,500
Prior consolidation zone before the latest rally.
Now acts as a potential first reaction level for profit-taking or short-term bounce.
Structure is visible with multiple candle bodies reacting here.
📉 Trade Plan & Execution
✅ Trade Idea: Short after Breakdown Confirmation
Entry: Current market price around $1,574 after the wedge breakdown and minor retest.
Stop Loss: Above the wedge and resistance zone at $1,679.5 — giving enough space to avoid fakeouts.
TP1: $1,514.1 — structure-based interim support.
TP2: $1,418.7 — key support zone and high-probability reversal point.
Target Zone: Blue support marked near $1,432, aligning with previous demand.
📊 Risk/Reward Ratio:
RRR is approximately 1:2.5+, depending on exact entry.
This allows traders to size trades conservatively while maintaining favorable returns.
🔎 Price Action Insights
Lower highs and bearish engulfing candles around resistance confirm institutional distribution.
Momentum has faded as evident from weaker bullish follow-throughs post wedge breakout attempts.
The current move could be part of a measured move from wedge height — aligning with TP zones.
⚠️ Risk Considerations
If price closes above $1,680 on 4H or Daily TF, the bearish idea is invalid.
Watch for bullish divergence or volume anomalies at TP1/TP2 — potential reversal signals.
The crypto market is sensitive to news; unexpected fundamental catalysts (ETF updates, macro news, etc.) can quickly flip momentum.
🧭 Strategic Outlook
This short opportunity is a textbook pattern-break trade, where we use a high-conviction chart pattern, clean structure, and confluence zones to plan a precision entry.
The goal is to ride momentum from a bearish breakout, targeting key supports before bulls might attempt a reversal. Ideal for swing traders and pattern-based strategists.
📌 Summary
🔹 Chart Pattern: Rising Wedge (Bearish)
🔻 Bias: Bearish / Short
🎯 TP1: $1,514
🎯 TP2: $1,418
🛡️ SL: $1,679
⏰ Timeframe: 4H
🔍 Confirmation: Breakdown from wedge + rejection at resistance
📈 Trade Type: Swing Short / Pattern Breakdown
"The market breathes through structure. Recognizing those structures before others is where the edge lies."
🧠 Market Context & Big Picture
Ethereum (ETH/USD) has been consolidating within a wide sideways range after a sharp drop that occurred in early April. Following this downtrend, a temporary recovery was seen, leading to the formation of a Rising Wedge, a classically bearish continuation/reversal pattern.
This setup shows price action losing momentum after an aggressive bounce from support and forming a lower-high structure, signaling potential bearish pressure resuming.
🔍 Chart Pattern Analysis
🔺 Rising Wedge Formation (Bearish Reversal)
A Rising Wedge is characterized by ascending trendlines with price making higher highs and higher lows, but within a narrowing range — hinting at buyer exhaustion.
The wedge pattern formed between April 10 to April 15, building just below a strong horizontal resistance.
The pattern broke down, confirming bearish sentiment as the price failed to break higher and sellers stepped in aggressively.
🟪 Key Technical Levels
🔴 Resistance Zone – $1,640 to $1,679
The top of the Rising Wedge aligns with this zone.
Multiple rejection wicks and bearish candlesticks show significant selling pressure.
Serves as the invalidator of this short setup — price closing above this level would negate the bearish pattern.
🟩 Support Zone – $1,480 to $1,500
Prior consolidation zone before the latest rally.
Now acts as a potential first reaction level for profit-taking or short-term bounce.
Structure is visible with multiple candle bodies reacting here.
📉 Trade Plan & Execution
✅ Trade Idea: Short after Breakdown Confirmation
Entry: Current market price around $1,574 after the wedge breakdown and minor retest.
Stop Loss: Above the wedge and resistance zone at $1,679.5 — giving enough space to avoid fakeouts.
TP1: $1,514.1 — structure-based interim support.
TP2: $1,418.7 — key support zone and high-probability reversal point.
Target Zone: Blue support marked near $1,432, aligning with previous demand.
📊 Risk/Reward Ratio:
RRR is approximately 1:2.5+, depending on exact entry.
This allows traders to size trades conservatively while maintaining favorable returns.
🔎 Price Action Insights
Lower highs and bearish engulfing candles around resistance confirm institutional distribution.
Momentum has faded as evident from weaker bullish follow-throughs post wedge breakout attempts.
The current move could be part of a measured move from wedge height — aligning with TP zones.
⚠️ Risk Considerations
If price closes above $1,680 on 4H or Daily TF, the bearish idea is invalid.
Watch for bullish divergence or volume anomalies at TP1/TP2 — potential reversal signals.
The crypto market is sensitive to news; unexpected fundamental catalysts (ETF updates, macro news, etc.) can quickly flip momentum.
🧭 Strategic Outlook
This short opportunity is a textbook pattern-break trade, where we use a high-conviction chart pattern, clean structure, and confluence zones to plan a precision entry.
The goal is to ride momentum from a bearish breakout, targeting key supports before bulls might attempt a reversal. Ideal for swing traders and pattern-based strategists.
📌 Summary
🔹 Chart Pattern: Rising Wedge (Bearish)
🔻 Bias: Bearish / Short
🎯 TP1: $1,514
🎯 TP2: $1,418
🛡️ SL: $1,679
⏰ Timeframe: 4H
🔍 Confirmation: Breakdown from wedge + rejection at resistance
📈 Trade Type: Swing Short / Pattern Breakdown
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.