After dropping in value briefly yesterday and testing the 1462.00 support level, ETH/USD has reversed higher and is near a value of 1564.00 as of this writing. ETH/USD started this week, however, with much lower values, and on 28th of February the cryptocurrency did test the 1300.00 mark. Since then, ETH/USD has likely hurt skeptical traders who believed another strong wave of downward momentum was about to be generated.
ETH/USD continues to demonstrate ability to trade with strong surges up and down, and this will entice traders with enough courage to wager. Technical traders should keep their eyes on the 1600.00 level as resistance. The level has certainly been toppled before, but if a sustained amount of trading can keep Ethereum above this juncture, it could cause a parade of additional buyers to step aboard and buy.
The current price position is a good place to be a speculator and test direction. Support remains slightly below the 1500.00 level for Ethereum. If it is punctured and the value of ETH/USD remains below this juncture, it could also cause skeptics to be reinvigorated and try to sell the cryptocurrency again. Until the 1600.00 and 1500.00 levels are touched by ETH/USD, conservative traders may want to try and sell near the 1580.00 mark and buy near the 1525.00 level.
Because ETH/USD has the capability of moving excessively fast, traders should use limit orders carefully to make sure they are practicing some form of caution. ETH/USD’s current price range has the capability to eventually prove a significant launch zone if support and resistance levels are broken in either direction. However, the short-term ability of ETH/USD to reverse and cause chaos also needs to be considered.
Late last week, sentiment in the cryptocurrency markets took a turn for the worse short term, but as is often the case with the major digital currencies, including ETH/USD, they were able to quickly generate buyers when support levels were tested. Trading ETH/USD remains speculative, technical charts are important and being able to take advantage of trends is vital.
Short term, it appears ETH/USD has some buying momentum and speculators who believe the cryptocurrency has additional room to climb may be proven correct if they buy on dips within the current price range.
Ethereum Short-Term Outlook:
Current Resistance: 1594.00
Current Support: 1493.00
High Target: 1662.00
Low Target: 1422.00
