Ethereum Futures Today by TradeCompass

TradeCompass: Ethereum Futures Analysis for February 5, 2025Current Market Position for ETH FuturesEthereum Futures is trading at $2,813 at the time of this analysis. Unlike typical TradeCompass strategies, where we turn bullish above a specific threshold and bearish below another, today’s approach involves fading the move—essentially betting on a reversal. This decision is based on higher time frame analysis, which suggests price may be contracting or forming a range.Bearish Scenario (Short Trade Setup)Short Entry: $2,913 (only after price first reaches $2,916)Reasoning:$2,916 aligns closely with the 2nd upper standard deviation of yesterday’s VWAP, making it a strong resistance level.We wait for price to touch $2,916 first and then enter short once it moves back down to $2,913.Bearish Profit Targets (may also apply to swing traders as it may require some patience)$2,825 (Partial Profit Target)A semi-round number and close to the Value Area Low (VAL) from November 6th (actual level: $2,823).$2,766.5 (Partial Profit Target)Just above today’s VWAP at the time of this analysis.Also near $2,760, which is the POC from early November (either November 5th or 7th).$2,722.5 (Partial Profit Target)Close to the Point of Control (POC) from February 3rd.$2,648 (Partial Profit Target)Just above the VWAP from February 3rd.$2,570.5 (Final Target for Standard Bears)Value Area Low (VAL) of February 3rd.No additional runner targets planned.Extended Bearish Target (For the More Patient Bearish Traders... And Believers :)$2,429 (Long-Term Runner Target for Extended Sell-off)Bullish Scenario (Long Trade Setup)Long Entry: $2,565Reasoning:A deeper pullback to this level would warrant a short covering by enough market participants, probaby, and a short term bullish position.Traders looking for confirmation can wait for price to first cross below $2,565 and then enter long only after it moves back above it. The confirmation can be based on their preferred timeframe (1-minute, 5-minute, or 15-minute).Bullish Profit Targets$2,641 (Partial Profit Target)Close to the VWAP of February 3rd.$2,689.5 (Final Target for Bullish Move)No further targets identified, as a strong continuation beyond this level is uncertain given today’s market conditions.Summary & Key TakeawaysToday’s TradeCompass deviates from the usual trend-following strategy, focusing instead on a fade trade approach due to broader market conditions.Short Setup: We wait for $2,916, then short at $2,915, targeting levels as low as $2,570.5.Long Setup: We go long only if $2,565 is reached, with moderate upside targets.Traders should use these levels as a guide and apply risk management appropriately.Trade at your own risk. Use this as an orientation, remember your stops, take partial profits when applicable and visit ForexLive.com for additional views.