Ethereum shows slight bullish momentum above 4,260, aiming for prices up to 4,465 amid volatility

    by VT Markets
    /
    Aug 12, 2025
    The tradeCompass methodology from investingLive gives traders clear and unbiased guidance by focusing on key levels and price-action triggers. For Ethereum futures on August 12, 2025, a bullish outlook is suggested above $4,303, while a bearish view is indicated below $4,260. Currently, Ethereum’s price is $4,290, showing a slight bullish trend. Ethereum futures are within a range of $4,200 to $4,400, balancing between opposing forces until a clear trend forms. A strong movement above or below these key levels could signal a momentum shift. Recent news reports record ETF inflows of about $1 billion in just one day, raising total Ether ETF assets to around $25.7 billion. Interest in Ethereum-based yield models is increasing, and transaction counts are on the rise due to enhanced Layer 1 capacity. However, since around 97% of ETH addresses are currently in profit, traders should exercise caution regarding potential profit-taking. Ethereum’s stronger performance compared to Bitcoin shows the momentum behind Ethereum-centric narratives. TradeCompass stresses the importance of executing trades strategically, including taking partial profits and managing stops. This methodology promotes smart decision-making by aligning trades with specific levels and watching for unexpected movements. This guidance aims to provide traders with organized insights and frameworks, rather than direct financial advice. It’s essential to evaluate personal risk and responsibilities when trading. At this moment, we face a crucial decision point for Ethereum futures, with prices hovering around $4,290. The market is in a tight range between $4,260 and $4,303. How the market reacts in the next few days will likely determine the trend for the rest of August. If we sustain a move above $4,303, it would show that buyers are in control, confirming strong fundamental news. The incredible $1 billion inflow into spot Ether ETFs yesterday—totaling over $30 billion since their launch in 2025—reflects significant institutional demand. In this case, we would aim to hold long positions, targeting a liquidity area at $4,465 and potentially higher in the coming weeks. On the other hand, if the price drops below $4,260, sellers would take over, suggesting that this range could be a distribution top. With nearly 97% of all Ether wallets currently in profit, the risk of widespread profit-taking is high if this support level fails. A drop below this point would shift our focus to deeper support around $4,160 and possibly a retest of the $4,000 psychological level. For derivative traders, the current tight range has lowered implied volatility to its lowest level in three months. This situation offers an opportunity to prepare for a significant price breakout, which seems increasingly likely. Strategies like buying options for potential large price moves in either direction (such as straddles) could be effective. We should also keep an eye on ETH’s strong performance compared to Bitcoin, which has been a notable trend lately. As long as this trend continues, traders might prefer long ETH positions over long BTC, or even consider pairs trades like long ETH and short BTC futures. This relative strength is driven by the success of the new ETFs and increasing activity in decentralized finance. The surge in ETF demand will be a crucial factor to watch in the coming weeks. Total assets within these products have reached $25.7 billion, creating a consistent bid that supports price dips. If these inflows remain strong, the most likely path is upward once this consolidation phase ends. Looking back, a similar period of range-bound trading occurred after the launch of U.S. spot Bitcoin ETFs in January 2024. That consolidation was followed by a significant rally. We could see Ethereum follow a similar pattern, coiling up in mid-August before making a substantial move upward into September.

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