Technical analysis by SiDec about Symbol ETH: Buy recommendation (5/18/2025)

ETH is setting the stage for its next major move — and the chart is packed with clues.After completing Wave 3 at $2738.50, ETH has entered a corrective phase, forming what looks like a bullish flag. But beneath the surface, smart money levels are aligning: VWAP, Fibs, key levels, and liquidity traps are all converging around one high-probability zone.This analysis breaks down both the long and short setups, backed by real confluence and clean R:R opportunities. Whether you’re planning to snipe the reversal near support or fade the rally at resistance, you’ll walk away with a clear trade plan and deeper insight into how price reacts at precision levels.Let’s get into it.🟢 Bullish Scenario: Long Setup with Deep ConfluenceAfter a fakeout pump into the golden pocket of this minor downtrend (typical for a Sunday), ETH rejected cleanly at the upper resistance of the bull flag channel.We're now watching for the swing low at $2406.63 to be swept, setting up a potential SFP (Swing Failure Pattern) at a highly confluent support zone:🔍 Confluence at the $2390–$2360 Zone:Anchored VWAP from the Wave 3 origin at $1752 is sitting at $2390Trend-Based Fib Extension 1:1 of the correction lands at $2386.84Liquidity pool just under the recent swing low0.382 Fib retracement of the entire Wave 3 at $2361.660.618 Fib Speed Resistance Fan intersects this zoneLower bull flag support line also alignsThis makes the $2390–$2362 zone a high-probability bounce area.📌 Plan:Laddered long entries between $2390–$2362, watching closely for a clean SFP or reversal signal.Target 1: $3000 psychological levelTarget 2: 0.618 Fib retracement at $3067.71 (potential Wave 5 top)Stop-loss: Below previous yearly open (can be tightened after confirmation)R:R: 1:5 or better after SL adjustment🔴 Bearish Scenario: Short Setup at Key Rejection ZoneIf ETH makes a move up to complete the 5th wave, we monitor $3067.71 — the 0.618 retracement of the entire corrective leg — as a key resistance.If price rejects here with momentum loss or bearish structure:📌 Plan:Short on confirmed rejection of $3067.71Stop-loss: Above $3211 (above 0.666 Fib)Target: Previous high near $2700 or lowerR:R: 1:2 or better depending on entry and structure🧠 Educational Insight: Why Confluence Increases ProbabilityMany traders chase setups based on single indicators. Real edge comes from stacking independent tools: VWAPs, Fibs, FVGs etc... When they align, the setup isn’t random — it’s high conviction.This strategy gives you a framework to anticipate where price is likely to move and why, rather than reacting emotionally.Patience and preparation will always outperform panic and reaction. Trade the plan — not the impulse.___________________________________If you found this helpful, leave a like and comment below! Got requests for the next technical analysis? Let me know.That sharp drop completed the ABC correction perfectly, tagging the 1:1 trend-based fib extension to the dollar. Wave C also printed a clean 5-wave structure — precision. Long setup remains intact, and the target stays unchanged.That played out beautifully, ETH held the 0.382 fib as support and bounced off. It’s now running into some resistance at the 0.618 Fib speed fan:So how did I know that a bounce was coming during the sharp shakeout drop? Let’s break it down in a way that’s both educational and a solid reminder to trust your process.First off, we were still in a strong bullish uptrend on the 1H timeframe—never forget the bigger picture. Then came the key Fibonacci zone between the 0.382 and 0.412 retracements, a classic area for price to find support during a healthy correction. Price tapped that zone cleanly and reacted just as expected.On top of that, my custom beta indicator (still a work in progress) lit up right at the edge of its long-entry threshold. That added another layer of confluence to the setup and gave even more conviction to take the trade.When the trend, key Fib levels, and confirmation from a solid indicator all line up—that’s your high-probability window.This bounce wasn’t luck. It was a calculated response to confluence and structure.Remember: trend is your friend, and confluence is your edge. Stay patient, trust your tools, and wait for the setup to come to you. That’s how you consistently catch moves—even during the chaos of a shakeout. 💪📈Always begin by zooming out and checking the trend on higher timeframes. It’s one of the most overlooked yet crucial habits for any trader. Understanding where price sits in the broader structure gives you clarity and prevents emotional, reactive trades.With my custom MA indicator, you can easily assess trend strength and direction using the 21 EMA/SMA across the daily, weekly, and monthly timeframes. This lets you instantly see whether price is respecting key moving averages or breaking down below them. It’s a simple but powerful tool to stay on the right side of momentum.Right now, ETH is trading above both the daily and weekly 21 EMA/SMA, which shows solid short-to-mid-term bullish momentum. However, we’re currently approaching a major resistance zone: the monthly 21 EMA/SMA, which lies between $2564 and $2709. This is a significant level not just from a structural perspective, but also as a great area to consider taking partial profits! Especially if you’ve been riding this move up from lower levels.You can use my MA indicator for free. Just head over to my profile, open the script folder, and add it to your chart. It’s designed to give you instant visual guidance on trend alignment across multiple timeframes.And always remember: Trading isn’t about catching every move. It’s about stacking confluences and managing your risk around key levels. Stay patient, stay disciplined, and always trade with the bigger picture in mind. 📈🔥🚨 ETH Update – May 22ETH is holding up strong and continues to respect the initial plan. After a clean bounce from the 0.382 Fib retracement, price has reclaimed key support levels! Clear bullish intent.✅ ETH is trading above:- Monthly Order Block: between $2600-$2500- 21 Daily EMA: $2,355- 21 Daily SMA: $2,318- 1H 500 EMA: $2,319- 1H 500 SMA: $2,272This alignment across multiple timeframes confirms bullish momentum and the trend remains your friend.🎯 Next major target zone:- Psychological level: $3,000- 0.618 Fib retracement: $3,067.71As long as ETH holds above these dynamic supports, bulls remain in control and a push into the $3K zone is on the table.Stay patient, let price unfold, structure is solid 👀📈