ETH/USD has created a downward path the past week of trading, but this happened after achieving record highs.
ETH/USD is challenging speculative confidence as trading starts this week. After achieving record highs on the 20th of February above the 2000.00 level, Ethereum has sustained a harsh incremental dive through support levels. In late trading yesterday, ETH/USD tumbled towards 1286.00, and the last time the cryptocurrency was valued at that depth was on the 1st of February.
Speculators will need to look at technical charts and gauge their sentiment carefully when trading ETH/USD short term. Ethereum, and many of the major cryptocurrencies, have enjoyed a tantalizing bullish run upwards the past three months. Traders cannot be faulted for believing the fantastic trend upwards may need to pause for a rest.
Technically, resistance levels around 1475.00 should be monitored. The juncture is near the current price ratio of ETH/USD, and if the mark can be punctured higher and value is sustained above this level, it may invite speculative buyers back into the market. The next target up and above could be around the 1565.00 level; if this price is hit, this could brush aside the negative sentiment which has taken hold short term and ignite another race higher for ETH/USD.
Confidence is the name of the game for speculators within ETH/USD. Speculators who suspect Ethereum may have further room to decline need to understand the dynamic ability the cryptocurrency has concerning reversals. Traders who believe there is a reason to sell into this market are advised, like buyers too, to be using risk management tools at all times.
ETH/USD appears to be waiting for a dose of positive sentiment to be delivered. After substantial gains the past three months and a record high only a bit over a week ago, traders may believe that support levels will start to prove adequate. Unfortunately for buyers, the support levels have not been strong enough the past week and their vulnerability is beginning to make speculators nervous.
Short-term traders should watch nearby resistance levels carefully. If these close values are not able to be punctured higher, selling ETH/USD on a speculative wager may prove to be a rather intriguing position while targeting support levels below. After a weekend of rather uninspiring trading, ETH/USD may be in store for another leg down near term.
Ethereum Short-Term Outlook:
Current Resistance: 1475.00
Current Support: 1395.00
High Target: 1565.00
Low Target: 1277.00