Technical analysis by signetron about Symbol ETH: Buy recommendation (2/1/2025)

ETH/USDT Weekly Chart Breakdown1. Overview of the ChartThe chart is a weekly timeframe for ETH/USDT on Binance.Various technical indicators and tools are used, including:Elliott Wave Analysis (Labelled waves 1 to 5, and corrective waves a, b, c).Support and Resistance Zones.Fibonacci Levels & Supply/Demand Zones.Trendlines & Chart Patterns (e.g., Rising Wedge).Stochastic RSI and Momentum Indicators.Buy and Sell Signals based on multiple confluences.2. Key Levels & Market StructureSupport Zones (Buying Areas)Discount Zone (~$500 - $1200): The blue shaded area represents a significant support region.Strong Low (~$86 - $121): Marked as a potential extreme bearish target, but unlikely unless a black swan event occurs.Equilibrium Zone (~$2000 - $2500): A fair value level where ETH could stabilize before resuming upward.Resistance Zones (Selling Areas)Premium Supply (~$4500 - $5200): Marked as a major selling area.Rising Wedge Breakdown (~$3500 - $4000): ETH has already broken down from this structure.Previous High (~$4800): Strong resistance, as price previously failed to hold.3. Market Trend & PatternsElliott Wave Perspective: ETH completed a 5-wave impulsive cycle, followed by a corrective (A)-(B)-(C) pattern.Rising Wedge Breakdown: Suggests a bearish continuation unless ETH finds strong demand at key support.Bearish Divergence in RSI: Indicates weakness in the trend.Fibonacci Discount Zone: ETH could retrace towards $1200 - $1500, aligning with previous cycle lows.4. Best Buying & Selling ZonesBuying Zones (Long Entry)$1500 - $2000: A strong accumulation zone. Price could retest before resuming an uptrend.$1000 - $1200: If ETH dips further, this becomes a high-value buy area.DCA Strategy: Buy in increments rather than one large position.Selling Zones (Short/Mid-Term Exits)$3500 - $4000: If ETH rebounds, this zone is ideal for partial profit-taking.$4500 - $5000: A major resistance; strong selling pressure expected.5. Risk Management StrategyPosition Sizing: Never risk more than 2-5% of your total capital per trade.Stop Loss Placement:If buying at $2000, place SL at $1750.If buying at $1500, SL at $1200.Take Profit (TP) Levels:TP1: $3000TP2: $3500TP3: $4500Hedging Strategy: If holding ETH, consider using futures shorts or stablecoins to mitigate risks.Long-Term Selling Strategy📌 Short-Term Take Profit (TP) Targets:$3000 - $3500 → First take-profit level in case of a relief rally.$4500 - $5000 → Strong historical resistance, ideal for partial profit-taking.📌 Long-Term TP Targets (2025-2026 Bull Run)$6000 - $7500 → Based on Fibonacci Extensions.$10,000+ → Psychological level; possible cycle top.Fibonacci-Based Price ProjectionsFibonacci extensions are widely used in technical analysis to project price targets after major market corrections.Using Fibonacci extensions based on ETH's previous cycle:Fibonacci LevelProjected Price Target1.618 Fib$6500 - $75002.0 Fib$9500 - $11,0002.618 Fib$13,500 - $15,0003.618 Fib (Extreme Bull Case)$18,000 - $22,000The most reasonable long-term target is $6500 - $7500 based on 1.618 Fib.A stronger bull market extension could push ETH to $9500 - $11,000.If ETH follows an extreme parabolic move like 2017, $15,000+ is possible.Institutional Adoption & Fundamental GrowthEthereum’s value is not just speculation—it's supported by fundamental growth: ✅ Ethereum ETFs Coming → Potential spot ETF approval could drive institutional demand.✅ Layer 2 Scaling (Arbitrum, Optimism, zkSync) → More transactions = Higher network value.✅ Deflationary ETH (EIP-1559) → ETH supply is decreasing over time.✅ Staking Yield (ETH 2.0) → Staked ETH reduces market supply, increasing scarcity.Conservative vs. Aggressive Scenarios for 2025-2026ScenarioETH Target PriceBearish (low demand)$4500 - $6000Moderate (standard cycle)$7500 - $10,000Bullish (strong adoption)$12,000 - $15,000Extreme (Supercycle)$18,000 - $22,000Final Thoughts & Conclusion🚀 Most Probable Target: $7500 - $10,000 in 2025-2026.🔥 Extreme Bull Case: $15,000+ possible, but not guaranteed.