The tradeCompass strategy at investingLive.com offers insights into trading Ethereum, specifically focusing on a potential bullish scenario for ETH Futures. The current pricing is between $3,950 and $3,960, with a target of $4,400. This longer-term approach extends beyond typical day and swing trade horizons, involving strategic entry and stop-loss placements.
The entry strategy identifies three buy zones around the current price level: $3,960, $3,947, and $3,937.5. A combined entry from these zones provides a reward-to-risk ratio potentially exceeding 7 if the $4,400 target is reached. The recommended stop-loss placements are between $3,887 and $3,884, with an alternative, more distant stop around $3,813. Breaking below $3,810 may indicate a bearish shift.
A bearish contingency plan includes target levels at $3,762, $3,697, and $3,633 if the bearish threshold is crossed. Unlike short-term plans, this strategy prioritises scaling into a bullish position rather than focusing extensively on partial exits. The tradeCompass framework is based on institutional trading levels and seeks to provide a structured map for traders interested in Ethereum’s potential bullish continuation.
This guide is not financial advice and emphasises responsible trading. For more analysis, readers are encouraged to visit investingLive.com.
From our current perspective on August 8, 2025, the immediate plan for derivative traders is to consider building a long Ethereum position. The structure of this trade anticipates a potential move from the current $3,960 price level toward a longer-term target of $4,400. This outlook requires patience, as it looks beyond typical day-trading timeframes.
We can scale into this bullish position by placing buy orders at key levels near the current price. An initial entry could be made at $3,960, with optional additional entries at $3,947 and $3,937.5. Using this layered approach provides a blended entry price and helps manage risk on the way to the $4,400 objective.
This bullish stance is supported by favorable macroeconomic trends. The July 2025 Consumer Price Index (CPI) report was released this week, showing inflation cooling to 2.9%, slightly below expectations. This data increases the likelihood that the Federal Reserve will hold interest rates steady, creating a better environment for risk assets like Ethereum.
Furthermore, we are seeing renewed institutional interest, which was a key driver of the market action in late 2024. Spot Ethereum ETFs have seen over $500 million in net inflows this week, a significant reversal from the minor outflows experienced in late July. This renewed flow of capital suggests larger players are positioning for a potential upward move.
On-chain data also provides a strong supporting argument for a supply squeeze. The total amount of circulating ETH locked in staking contracts has just surpassed 30% for the first time, reducing the available supply on exchanges. This tightening supply, combined with rising demand, reinforces the potential for price appreciation.
To manage risk, we must place a stop-loss where the bullish idea is clearly invalidated. A primary stop-loss around the $3,887 level would position us below the psychological $3,900 mark and key technical zones. This placement aims to avoid being shaken out by normal market volatility or stop hunts.
The critical line in the sand for this bullish thesis is $3,810. A sustained price break below this level would signal that sellers have taken control of the market. If this threshold is breached, the focus would shift to potential downside targets at $3,762 and below.
Looking back, the market’s current structure is reminiscent of the consolidation we saw before the major rally in the second half of 2024. Open interest in Ethereum futures has climbed back above $15 billion, indicating that speculative interest is returning. However, funding rates remain stable, suggesting this is driven by organic demand rather than over-leveraged euphoria.
