January 07, 2025 at 10:40AM
Ethereum Futures Analysis for Today
Financial Instrument: Ethereum FuturesPrice at the Time of Analysis: 3,690
Key Levels to Watch in ETH Futures
Bullish Above 3,733
Why Bullish Above?A move above 3,733 signals that the price has surpassed yesterday’s Value Area High (VAH), a critical resistance level. This breakout could indicate buyer strength and open the door for further upward momentum.
Profit Targets for Long Positions:
3,762: A significant resistance level where profit-taking may occur.
3,790: An extended target near the next resistance zone.
Bearish Below 3,677
Why Bearish Below?A break below 3,677 would place the price beneath today’s and yesterday’s Value Area Low (VAL), signaling weakness and a potential shift in control to sellers.
Profit Targets for Short Positions:
3,642: A level just above the Point of Control (POC) from two days ago.
3,589: The VWAP from two days ago, acting as another potential support level.
3,563: The VAL from two days ago, representing an extended bearish target.
ETH Futures Contract Highlights
Volume: 787 contracts
Open Interest: 14.93K contracts
Contract Size: 50 Ethereum per contract
Front Month: ETHF2025
ETH Futures Performance Metrics
1 Week: +8.98%
1 Month: -4.12%
3 Months: +49.76%
6 Months: +18.97%
Year-to-Date (YTD): +9.04%
1 Year: +65.25%
The performance metrics highlight strong long-term gains over the past year (+65.25%) and the last three months (+49.76%), despite short-term weakness in the last month (-4.12%).
Understanding the Tools Behind ETH Futures Analysis
VWAP (Volume-Weighted Average Price)
VWAP is calculated by dividing the total dollar value of trades by the total volume of trades. It provides a benchmark for fair value:
Above VWAP: Indicates bullish strength.
Below VWAP: Suggests bearish pressure.
Value Area Concepts (VAH, VAL, POC)
Value Area High (VAH): The upper boundary of the price range where 70% of the trading volume occurred, often acting as resistance.
Value Area Low (VAL): The lower boundary, typically a support level.
Point of Control (POC): The price level with the highest traded volume, often serving as a magnet for price action.
Takeaways for Today’s ETH Futures
Bullish Scenario: A breakout above 3,733 targets 3,762 and 3,790 for profit-taking opportunities.
Bearish Scenario: A move below 3,677 could lead to tests of 3,642, 3,589, and 3,563 as potential downside targets.
Trading Guidance: Use the highlighted levels to plan your trades, and monitor price action closely at these key areas.
Trade at your own risk. Visit ForexLive.com for additional perspectives.
This article was written by Itai Levitan at www.forexlive.com.
