Can you make 13x of what you risked?

Most good traders in this world make a significant portion of their profits from just a handful of trades in a year. They take multiple small positions, willing to lose maybe 1% of their risk capital on each trade. But when they catch a good trade, often in the early stages of a significant trend, they stay with it for as long as possible. Of course, they continually adjust their stop-loss levels as the market moves increasingly in the right direction. The flip side is that they are pretty willing to accept several small losses without being deterred. That is always the case, because they acknowledge, like I often do, that we don’t know the future. We have a system, and we follow the rules and guidelines. That’s it! Now let us turn to Ethereum! This post features 19 charts, and for those unfamiliar, I teach my online Elliott Wave course using case studies like this one. Check it out when you find time, and you’ll be amazed at what you can learn there.

Important Disclaimer: I make it clear to you that what follows is NOT a recommendation to buy or sell ETHUSD. It serves only as an example of the case study method that I use to teach my students how to TRADE any market using Elliott Waves. You should consult your financial adviser before you risk any real money in the markets.

We begin our analysis from the significant low of 883.60, seen on June 18, 2022, and observe that wave 3 was extended to reach the 261.8% projection level.

Suppose wave 4 came down as shown here, then sub-wave c inside wave 4 was 138.2% of sub-wave a.

IN that case, wave 5 has ended quite nicely at the 61.8% measure of 0-3, just as I have taught you in my Elliott Wave book “Five Waves to Financial Freedom”.

When a five-wave bull cycle ends, we get a three-wave correction. This is precisely what happened in Ethereum. It was a correction that we will label as ABC, where wave B was 61.8% of Wave A.

The Wave C that followed was quite deep, traveling to the 223.6% projection of wave A. But what is remarkable is that there were five sub-waves inside wave C, and you could have easily traded that if you knew Elliott Waves!

Once we recognize that Wave C of a correction is nearing its end, we should immediately seek buying opportunities, as it is the nature of financial markets to reverse course at that juncture. We should evaluate the potential upside and take a small risk based on the reward-to-risk ratio.

I imagine most of you missed that opportunity back in April 2025. But never mind that, as there are always new ones that show up now and then.

In case you don’t already know about my Consulting service or online Elliott Wave course, jus to go https://wavetimes.com and you will find the links there.