ETH Long Setup: TP at $2,878 / $3,749 / $4,111

Ethereum (ETH/USD) has printed a significant bullish candle on Thursday, May 8, 2025, signaling the beginning of a strong upside move. After consolidating for several weeks, ETH has broken above previous resistance levels, suggesting a renewed bullish trend toward its all-time high.

🔍 Technical Observations

• A strong bullish engulfing candle on May 8 confirms buying interest and momentum shift.
  
• ETH is currently trading around $2,578, after breaking past short-term resistance.
  
• This move is supported by rising momentum on the TSI (True Strength Index), which confirms the strength of the current breakout.
  

Long-Term Support Zone

• The $1,390 level has acted as a strong long-term support and served as the launchpad for this rally.
  
• Price respected this zone during the recent accumulation phase and is now moving firmly upward.
  

🎯 Take Profit Levels

I have identified the following Take Profit (TP) targets based on historical resistance zones and price structure:

TP1: $2,878 – Local resistance from the previous range.
TP2: $3,447 – Corresponds with the last major breakdown level.
TP3: $3,749 – Another key resistance zone from earlier this year.
TP4 (All-Time High): $4,111 – Major psychological and technical resistance.

🔻 Stop Loss Strategy

• A static Stop Loss is placed at $2,309, just below the recent breakout zone, offering a safe buffer against false breakouts.
  
• Alternatively, traders can adopt a trailing stop strategy after TP1 is hit to lock in profits and manage risk dynamically.
  

📈 Risk-Reward Analysis

• Entry: $2,578
  
• Stop Loss: $2,309 (Risk: −11.17%)
  
• Target (TP4): $4,111 (Reward: +58.14%)
  
• Risk-to-Reward Ratio: ~5.21 – A very favorable setup for swing or medium-term traders.
  

Fundamental Bullish Drivers

• Growing optimism around a potential Ethereum Spot ETF approval in the U.S. has sparked investor confidence and institutional interest.
  
• The Dencun upgrade has significantly reduced transaction fees and increased scalability, improving Ethereum’s overall utility for developers and users.
  
• Major institutions are increasing ETH holdings, viewing it as the leading smart contract platform with real-world use cases in DeFi, NFTs, and Web3.
  
• A large percentage of ETH is now locked in staking contracts, effectively reducing circulating supply and applying upward price pressure.
  

Final Thoughts
Ethereum appears to be in the early stages of a bullish wave targeting multiple key resistance levels. With strong momentum, clear structure, and a high reward-to-risk profile, this setup presents a compelling opportunity for trend traders.
Always use proper risk management and adjust your position size based on your risk tolerance.