Technical analysis by learningedge about Symbol ETH: Buy recommendation (5/16/2025)

Ethereum (ETHUSD) is setting up for a major directional move on the weekly chart, and all eyes are on the key breakout zone above $2,800. Let’s walk through the analysis behind this swing trade idea and map out the key risk and reward levels: ▶️ Technical Story at a Glance: After months of downside, ETH has rebounded sharply off the $1,600 zone (clear weekly demand and high volume). Price is now pressing right up against a thick supply (resistance) zone that includes the psychological and technical resistance at ~$2,800. We’re seeing several bullish technical signals align right as price approaches a potential inflection point: • Weekly MACD Bullish Cross – signaling that longer-term momentum is flipping. • StochRSI and PSAR bullish – suggesting upside is in play, not overextended yet. • Volume profile supportive – no blow-off on the move back, buying looks organic. • Ichimoku/Cloud structure – if price can get a weekly close above the cloud (and $2,800–$2,900 zone), that could mark a regime change back to bullish. ▶️ The Trade Idea: Plan: Enter long on a confirmed weekly close above $2,800, as that would represent a powerful technical breakout. Targets: Primary: $3,250 (previous major supply/POI zone and clear chart resistance). Stretch: $4,100 for those who want to trail stops and ride a potential trend. Stop Loss: Below $2,350 (recent structure support and under the cloud) for smart risk control. Risk Management: Size positions so no more than 1–2% of equity is at risk on the setup. ▶️ Trade Management & Execution: Wait for confirmation — patience here beats trading early! Set alerts for a weekly candle close above $2,800 and confirm bullish behavior in MACD and trending indicators. Once triggered, enter the long with your stops in place and aim for the first major target at $3,250. Take partial profits along the way and move your stop to breakeven if the move continues in your favor. ▶️ Why This Setup? This setup aligns multiple timeframes and indicator signals for a high-conviction swing trade. The next major resistance is still a good distance away, giving bulls room to run, while clear invalidation ($2,350) allows for controlled losses if the thesis is proven wrong. ▶️ Key Levels Recap: Entry: Weekly close above $2,800 Stop: $2,350 Targets: $3,250 (primary), $4,100 (stretch) Keep a close eye on volume, candle closes, and confirm momentum before executing. If price fails at resistance, step aside and wait for a better opportunity. Always trade your own plan and manage risk!