ETH/USD has come off highs and is now testing important short-term support levels, which are adding to Ethereum’s speculative storm.
ETH/USD, like other major cryptocurrencies, has been abuzz with noise the past week of trading. After hitting all-time highs last week, ETH/USD has experienced a reversal. Experienced traders understand that there are no one-way avenues in the trading world, and cryptocurrencies provide this reminder quite frequently. Volatility is the name of the game for traders and the sudden move lower in ETH/USD is a calling card for speculators with steel stomachs who seek opportunity.
Having traded near the 2550.00 value on the 15th of April, ETH/USD now finds itself within sight of the 2000.00 mark. However, as of this writing, ETH/USD, while having traversed lower since last night, is still quite alluring and actually showing resilience above the 2100.00 mark. Speculators now have to ponder if they believe optimism will rejuvenate or if there will be further erosion of value.
ETH/USD continues to move in a swift manner, and traders are cautioned to use limit orders when pursuing nearly all trades within the cryptocurrency. The support junctures below of 2090.00 to 2040.00 should be monitored; if they fail to hold, or even face a consistent test of their values, it may be a signal that the 2000.00 mark can be put under pressure. After reaching its all-time highs on the 15th of April, only three days later, USD/ETH was trading near the 1940.00 for a brief moment.
Volatility is a major part of trading ETH/USD. Certainly it is a respected cryptocurrency, but it remains a speculative endeavor and traders need to understand that placing a buying or selling position of Ethereum is a wager. Technically, ETH/USD does demonstrate evidence of a solid bullish trend, but reversals lower remain powerful. Betting against USD/ETH with a selling position in the short term remains a trade which is still likely going against the grain.
Cautious traders who remain optimistic and believe USD/ETH will recapture its momentum may want to consider buying positions with limit orders that await slight pullbacks. However, traders who are aggressive and feel the 2115.00 to 2140.00 is a solid area to buy ETH/USD and pursue momentum towards highs seen only yesterday cannot be faulted.
Ethereum Short-Term Outlook:
Current Resistance: 2150.00
Current Support: 2090.00
High Target: 2275.00
Low Target: 1971.00