Ethereum futures are currently priced at $3,588, remaining unchanged from the previous day’s close. A bearish stance exists as the price is below the $3,615 bearish threshold, with a bullish breakout only expected above $3,655.

Ethereum’s price remains in bearish territory if it stays under $3,615, pushing the short-term outlook further bearish. Short positions could be initiated at the current price, with possible extensions near a $3,615 retest. Minor retracements might occur before a further decline.

On the bullish side, a narrow path exists if the price rises above $3,655. Such a move would face strong resistance, possibly limiting upward momentum. Profit-taking levels for short trades include $3,552 and $3,540, along with $3,510 and $3,427 as further targets.

Long trades should be approached cautiously unless ETH clearly surpasses $3,655. If bullish territory is re-entered, targets include $3,669 and $3,688.5, with higher extensions to $3,728 and $3,779. The Value Area represents popular trading zones, acting as potential support or resistance.

TradeCompass offers guidance for trade management, suggesting only one trade per direction and moving stops to breakeven after partial profits. The tool serves as orientation rather than strict rules, encouraging traders to adjust based on market dynamics.

As we begin the week of August 6th, 2025, our immediate outlook for Ethereum is cautious. The price is currently trading below the key $3,615 threshold, putting us in bearish territory. This keeps the short-term directional bias to the downside for now.

Recent on-chain data supports this view, with exchange inflows for ETH increasing by 12% over the last seven days. This often suggests traders are preparing to sell, adding weight to the current bearish setup. Furthermore, open interest in perpetual futures has seen a slight dip while funding rates remain close to flat, indicating a lack of aggressive bullish conviction.

For traders leaning short, the path of least resistance appears to be downward. We should watch for initial profit-taking opportunities around the $3,552 level. Hitting this target, followed by $3,540, is the signal to move our stop-loss to breakeven and secure the trade.

If selling pressure accelerates, we could see a test of deeper support near the July 17th value area low around $3,427. This price action is reminiscent of the choppy trading we experienced in the summer of 2024, where initial weakness led to a retest of prior monthly lows. This suggests that any break of $3,500 could see momentum pick up.

The path for bulls is much more difficult in the coming weeks. We should only consider long positions if the price firmly reclaims $3,655, as there is significant resistance waiting just above. Recent news from early August 2025 regarding potential SEC scrutiny on DeFi protocols is likely to cap any enthusiastic rallies for now.

In this market environment, taking partial profits is not just a suggestion; it’s a primary defense. Securing gains at the first and second targets protects us from sudden reversals. Remember to use a confirmation, like a 30-minute candle close, before acting on a break of our key levels.