ETH/USD has lost value the past twenty-four hours as the cryptocurrency has broken through important support levels. After falling through the 1700.00 mark yesterday, ETH/USD became extremely volatile and, when the 1650.00 juncture was proven weak, the sell-off became more powerful. As of this writing, ETH/USD is traversing below the 1600.00 level.
Speculators who have the ability to withstand such large movements may be looking at ETH/USD as a potential buying opportunity within the current value band. However, ETH/USD is now within the vicinity of technical marks that will take a great deal of emotional fortitude to convince a speculator to go long.
Support near the 1542.00 to 1515.00 junctures should be watched carefully; if these levels begin to be tested below, technical traders will see that the next large support level isn’t until the 1440.00 mark. ETH/USD was trading near the 1440.00 juncture when the month of March started. On the 28th of February, ETH/USD was around the 1330.00 level. ETH/USD has seen its veneer of calm trading brushed aside in the past day and has reminded speculators that it is a volatile asset.
The 1600.00 level may prove to be a vital inflection point short-term with ETH/USD, and traders may feel more comfortable buying if they see Ethereum gather stability and maintain a higher value range. The broad cryptocurrency market has seen pressure downward, and after following the huge bullish run the past five months, some traders may be wondering if the exuberance within the asset class is about to run out of power.
Traders should be cautious short term with ETH/USD and are strongly advised to use limit orders. Momentum trading may be a solid tactic for Ethereum short term. Technically, the price movements of ETH/USD have been very swift and the use of take-profit and stop loss orders is necessary. Picking a direction for ETH/USD will take a significant amount of courage within the current price storm.
If ETH/USD is not able to trade above the 1600.00 juncture comfortably during the day, short-term traders may decide to speculatively look for selling opportunities when Ethereum approaches nearby resistance. The use of leverage should be managed wisely when trading ETH/USD today and tomorrow because volatility will likely continue.
Ethereum Short-Term Outlook:
Current Resistance: 1611.00
Current Support: 1542.00
High Target: 1694.00
Low Target: 1480.00
