Ethereum futures are priced at $3,588, unchanged from yesterday. The market shows a bearish trend since the price is below the key level of $3,615. A bullish breakout will only happen if it rises above $3,655. As long as Ethereum stays below $3,615, the outlook remains bearish. Short positions can be taken at the current price, with possible extensions near a retest of $3,615. Minor pullbacks may occur before a further drop. If the price goes up and crosses $3,655, it will face strong resistance, which could limit any upward movement. For short trades, consider profit-taking levels at $3,552 and $3,540, with additional targets at $3,510 and $3,427. Be cautious with long trades unless ETH clearly goes above $3,655. If it re-enters bullish territory, targets include $3,669 and $3,688.5, with higher levels of $3,728 and $3,779 as possible extensions. The Value Area shows popular trading zones, which can either support or resist price changes. TradeCompass provides trading management advice, suggesting only one trade per direction. After taking partial profits, move stop-losses to breakeven. This guidance is flexible, encouraging traders to adapt to market changes. As we enter the week of August 6, 2025, the outlook for Ethereum is cautious. The price is below the important $3,615 level, keeping our short-term trend bearish for now. Recent on-chain data supports this bearish view, with ETH exchange inflows up by 12% over the past week. This often indicates that traders are preparing to sell, reinforcing the current bearish sentiment. Open interest in perpetual futures has slightly dropped, and funding rates are nearly flat, showing weak bullish confidence. For traders who prefer short positions, the easiest path seems to be downward. Keep an eye on profit-taking opportunities around $3,552. If we reach this target, followed by $3,540, it’s a good time to move stop-loss to breakeven to protect the trade. If selling pressure increases, we might test deeper support near the July 17th low around $3,427. This situation is similar to the volatile trading seen in summer 2024, where initial weakness led to retesting prior monthly lows. A break below $3,500 could gain further momentum. The outlook for bulls is challenging in the upcoming weeks. Long positions should only be considered if the price securely reclaims $3,655, as significant resistance exists just above. Recent news from early August 2025 about possible SEC scrutiny of DeFi protocols may limit bullish rallies for now. In this market, taking partial profits is essential. Securing gains at the first and second targets can protect us from unexpected reversals. Remember to wait for confirmation, like a 30-minute candle close, before acting on any key level breaks.

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