The tradeCompass strategy from investingLive.com provides insights into trading Ethereum and highlights a potential bullish scenario for ETH Futures. The current price is between $3,950 and $3,960, with a target of $4,400. This strategy takes a long-term view, differing from typical day or swing trading, and involves careful planning for entry and stop-loss placements. For entry, there are three key buy zones near the current price: $3,960, $3,947, and $3,937.5. Buying from these zones could lead to a reward-to-risk ratio of over 7 if the price hits $4,400. Recommended stop-loss levels are between $3,887 and $3,884, with a longer stop at around $3,813. If the price falls below $3,810, it may indicate a shift to bearish sentiment. In case the bearish threshold is crossed, target levels would shift to $3,762, $3,697, and $3,633. This strategy focuses on gradually building a bullish position rather than frequently taking partial exits. The tradeCompass framework is influenced by institutional trading levels, offering a structured approach for those interested in Ethereum’s upward potential. This guide is not financial advice and encourages responsible trading. For further analysis, visit investingLive.com. As of August 8, 2025, derivative traders should think about increasing their long position in Ethereum. This trade expects a move from the current $3,960 price up to a longer-term target of $4,400, requiring patience and a longer outlook than day-trading. Traders can scale into this bullish position by placing buy orders at strategic levels near the current price. An initial buy could be made at $3,960, with additional possible entries at $3,947 and $3,937.5. This layered method helps manage risk while aiming for the $4,400 target. Favorable macroeconomic trends support this bullish outlook. The latest Consumer Price Index (CPI) report from July 2025 shows inflation cooling to 2.9%, slightly below expectations. This suggests the Federal Reserve may keep interest rates steady, benefiting risk assets like Ethereum. There is also renewed interest from institutional investors, a key factor in late 2024’s market movements. Spot Ethereum ETFs have gained over $500 million in net inflows this week, a strong turnaround from minor outflows in late July. This influx indicates that larger investors are positioning for potential price increases. On-chain data points to a supply squeeze as well. More than 30% of circulating ETH is now locked in staking contracts, reducing the supply available on exchanges. This constrained supply, paired with rising demand, strengthens the case for price increases. To manage risk, it’s important to set a stop-loss at a level that would clearly invalidate the bullish plan. A primary stop-loss around $3,887 would keep us below the significant $3,900 level and important technical zones, allowing us to avoid being influenced by normal market volatility. The crucial line for this bullish outlook is $3,810. If the price drops and stays below this level, it would suggest sellers have taken control. In that case, we would look at potential downside targets of $3,762 and lower. Looking back, the current market structure is similar to the consolidation phase before the significant rally in late 2024. Ethereum futures open interest has risen above $15 billion, indicating that speculative interest is returning. However, stable funding rates suggest that this is driven by genuine demand instead of excessive leverage.

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