Ethereum (ETH) recent trends have attracted market attention. From the daily chart perspective, an ABC correction pattern seems to be forming. Wave A fell from 4794 to 4364, a drop of 430 points; Wave B rebounded from 4364 to 4575, nearing the Fibonacci 0.5 retracement level. According to the zigzag ABC wave calculation principle, if the length of Wave C is comparable to that of Wave A, then the potential target level may be around 4145.

From the 4-hour level, the drop from 4794 to 4364 can be seen as the first wave of W-shaped zigzag adjustment in a simple ABC correction. Subsequently, the rise from 4364 to 4575 may be the X wave rebound. This raises a question: will the new round of decline that begins at 4575 evolve into a Y wave zigzag adjustment? If so, will the adjustment target reach around 4150? The answers to these questions will ultimately be revealed by the market trends.

The wave theory, as a tool for market behavior analysis, is valuable not only for prediction but also for a deep description of market behavior. However, a single technical analysis method often struggles to fully grasp the market. By combining wave theory with Japanese candlestick charts, Murphy's financial market technical analysis, and other methods, traders can validate market trends from multiple angles, helping them more accurately assess the risk-reward ratio.

For traders, the ultimate goal of technical analysis is to establish a trading system based on risk and profit management. In this process, setting reasonable stop-loss orders is crucial as it helps us effectively manage unexpected risks. Remember, successful trading is not just about predicting market trends, but also about how to manage risk and protect capital.