ETHUSDT 4H Technical Analysis: Wave 3 Live as Price Targets VAH/POC Retest
Ethereum 4H price action analysis: Wave 3 expansion is live after a perfect Fib/OB sweep. Learn key VAH and POC retest strategies.
Market Overview: Reaccumulation Setup Delivers
The latest 4-hour chart structure for ETHUSDT confirms that our structural reaccumulation roadmap played out with textbook precision. Following a clean liquidity sweep into the Order Block (OB) sweet spot, Ethereum validated its structural support and triggered a strong impulsive rally into Wave 3.
Deconstructing the Move: Wave C & Fibonacci Confluence
Market structure always leads the way. In our previous update, we identified an active Last Point of Support (LPS) aligned with a high-probability demand zone. The recent price action executed cleanly:
- Liquidity Sweep: Wave C swept directly into the OB sweet spot, capturing sell-side liquidity before reversing.
- Fibonacci Stacking: The corrective phase stacked directly inside the critical Fibonacci cluster bounded by 0.236, 0.295, and 0.382 levels.
- Structure Reclaim: Buyers swiftly defended the zone, reclaimed market structure, and impulsed higher to tag the initial Wave 1 projection near $2,547.
What Is Next? Watching the VAH and POC Retest
Now that Wave 3 momentum is active, chasing green candles at local highs presents poor risk-to-reward ratios. Instead, disciplined traders should look for pullbacks into key volume profile levels to join the larger macro uptrend.
Key Levels & Technical Confluences:
- Value Area High (VAH): Serves as the primary dynamic support zone on initial intraday pullbacks.
- Point of Control (POC): The highest volume node of the consolidation range. A tap of the POC offers an optimal risk-adjusted re-entry opportunity.
- Wave 3 Expansion: Extended Elliott Wave projections favor continued upside targeting higher liquidity pools beyond $2,547.
Execution Strategy & Risk Management
A systematic execution model is critical when trading fast-moving Wave 3 expansions. Here is the tactical framework:
1. Long Entry Triggers
Monitor lower timeframe charts (15m/1h) for a corrective, declining-volume drift into the VAH / POC zone. Wait for a bullish Market Structure Break (MSB) or confirmation candle prior to execution.
2. Stop Loss & Invalidation
Place your stop loss below the invalidation level of the local swing low or beneath the lower boundary of the demand Order Block. A 4H candle close below the POC invalidates the immediate bullish continuation thesis.
3. Take-Profit Strategy
- TP1: Retest of the local swing high near $2,547.
- TP2: The 1.618 Fibonacci extension of Wave 1.
- TP3: Key daily liquidity pools above major structural resistance.
Trading Psychology: Capitalizing on Momentum Without FOMO
Impulsive Wave 3 moves often trigger Fear Of Missing Out (FOMO) among retail traders, leading to late entries at resistance. Professional technical analysis relies on patience—waiting for price to return to high-volume value zones like the VAH and POC ensures you trade with the trend while maintaining tight, mathematically favorable risk management.