Ethereum Futures TradeCompass – Updated January 20, 2025
Current Context: Ethereum futures (ETH 01-25) are trading around $3,390, with today’s Value Area High (VAH) recently recalculated to $3,416. The price has broken above the psychological level of $3,400, reaching a high of $3,402.5 in the past half-hour. The VWAP and Point of Control (POC) remain dynamic but are critical markers for intraday sentiment. The market remains poised for a decisive move, with clear thresholds for bullish and bearish scenarios.
The Value Area High (VAH) at $3,416 is the key level for a bullish breakout. To confirm strength, two consecutive 30-minute bars must close above this level. Once this occurs, the following upside targets come into focus:
$3,492 – Just below yesterday’s VAH, offering the first potential resistance level.$3,533 – Slightly below today’s third upper standard deviation of VWAP, aligning with the next major upside zone.$3,610 – Near the third upper standard deviation of yesterday’s VWAP, just above the psychological round number of $3,600.Bearish Below: $3,357
$3,309 – Today’s VWAP, acting as the first potential support level.$3,253.5 – Just above today’s VAH, offering a partial profit zone for shorts.$3,234.5 – Slightly above the first lower standard deviation of today’s VWAP, a critical support area.$3,159 – Just above the second lower standard deviation of today’s VWAP.$3,084.5 – Positioned near the third lower standard deviation of today’s VWAP, this aligns with significant oversold levels.
Bearish traders should be cautious of temporary wicks below $3,357, as false breakdowns are common around dynamic support levels.
Bullish Strategy:
Wait for two consecutive 30-minute closes above $3,416 to confirm the breakout.Use tight stop-loss orders just below the breakout level to manage risk.Set partial profit targets at $3,492 and $3,533, holding for a potential extended move toward $3,610.Wait for two consecutive 30-minute closes below $3,357 before initiating shorts.Use stop-loss orders above the breakout zone to manage risk.Scale out of positions at $3,309 and $3,253.5, holding for deeper targets near $3,159 and $3,084.5 if the selling pressure continues.
Neutral Zone:
Price action between $3,357 and $3,416 remains consolidative and indecisive. Traders are advised to avoid entering new positions within this range and instead wait for confirmation of direction.Value Areas and VWAP Bands are dynamic tools that recalibrate throughout the trading day.
Value Area High/Low: These levels signify where 70% of trading volume occurred and act as dynamic thresholds for breakout and breakdown scenarios.VWAP and Standard Deviations: The VWAP provides a weighted average price, while its deviations identify areas of likely support and resistance. Breaking beyond these deviations often signals stronger directional moves.Disclaimer:This analysis is for informational purposes only and does not constitute financial advice. Use it as a guide and trade at your own risk. Always have a clear risk management plan. Trade Ethereum at your own risk and visit ForexLive.com for additional views.
This article was written by Itai Levitan at www.forexlive.com. Read More Details
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