In the case of Ethereum (ETH/USDC), which is at 3597.37 USDC with an upward trend on the daily chart, the long-term strategy should be based on solid fundamentals and taking advantage of current and future market trends. Here I present a long-term oriented strategy:
General Technical Analysis
Key resistances:
First resistance: 3,750 USDC (recent high on the chart).
Major resistance: 4,000 USDC (important psychological zone and potential long-term target).
Key supports:
First support: 3,400 USDC (close to the 7-day moving average).
Strong support: 3,000 USDC (psychological zone and key line in case of correction).
Indicators:
Moving averages:
The 7-day moving average (yellow) shows strong support in the trend.
The 25 and 99-day averages reinforce the bullish trend in long time frames.
MACD: Positive momentum with recent bullish crossover, but watch if it stays above the zero level.
Long-Term Investment Strategy
Buy in stages (DCA - Dollar Cost Averaging):
Divide your capital into equal parts and make purchases at strategic levels:
First purchase: Current (3597 USDC).
Second purchase: If it corrects to 3,400 USDC.
Third purchase: In case of a deeper correction to 3,000 USDC.
This method minimizes the risk of entering at highs and takes advantage of any future correction.
Breakout of resistances:
If ETH breaks above 3,750 USDC with high volume, it is a bullish continuation signal. You can add more position with a long-term target at 4,500 - 5,000 USDC.
Long-term Risk and Stop-Loss:
If ETH strongly drops below 3,000 USDC, consider partially exiting to avoid further loss. The next key support would be at 2,800 USDC.
Fundamental Reasons for ETH in the Long Term
Institutional adoption: Ethereum remains the leading platform for smart contracts, with increasing adoption in DeFi and NFTs.
ETH 2.0 and scalability: Updates like staking and sharding strengthen its case as a long-term asset.
Growing demand: Projects building on Ethereum continue to increase, ensuring its relevance.
Long-Term Price Projection
6 months to 1 year:
If macroeconomic conditions are favorable, ETH could reach 4,500 - 5,000 USDC.
1-3 years:
With complete updates and greater adoption, it could surpass 6,000 - 7,000 USDC.