ETH/USD touched new record highs late last night as the cryptocurrency approached the 1475.00 mark before seeing a slight reversal lower unfold. Speculative fever within Ethereum and other cryptocurrencies appears to be reaching a fever pitch, and the question is if the party will continue for traders who have enough courage to participate within the marketplace.
ETH/USD does continue to offer a rather interesting perspective regarding technical charts, and trading the asset can be effectively accomplished if solid risk management is used. ETH/USD is now trading above its record levels achieved in January of 2018. Within these lofty heights, speculators should understand that plenty of noise will be heard and it may be beneficial to not only monitor current prices vigilantly but also not get caught up in the enthusiasm.
ETH/USD should be viewed like any other speculative endeavor. Volatility is a certainty within Ethereum, but the cryptocurrency has actually been behaving in a rather polite fashion. Selling into the buying frenzy would take plenty of fortitude on the behalf of a trader. Going against a trend is not for the weak, particularly when a bullish move is so strong. However, the upwards trend this January can be interpreted as a speculative bubble, particularly when the past month of trading is compared to the past six months which were, yes, upwards but accomplished in a quiet way.
Since ETH/USD moves fast, traders need to consider using wide stop losses when trading. However, certain values do carry a significant amount of psychological sentiment as inflection points. If ETH/USD can sustain its value above the 1400.00 level, it may prove to be an important barometer of current short-term market sentiment and underscore that more feverish buying will develop.
Having touched another record high, ETH/USD has certainly created new targets higher for bullish speculators. Buying ETH/USD on dips in the market appears attractive, but traders need to also be quick and make sure they are conducting risk management appropriately just in case things do turn sour.
The 1475.00 mark is now a key focal point for traders up above. If this value proves vulnerable and its value as a resistance level is brushed aside, traders will certainly have the 1500.00 level within their sights and be hungry for even greater highs. Buying ETH/USD remains an attractive speculative option short term.
Ethereum Short-Term Outlook:
- Current Resistance: 1475.00
- Current Support: 1387.00
- High Target: 1525.00
- Low Target: 1296.00
