ETH/USD raced to all-time highs on Monday when it hit a price near the 4200.00 ratio. The day before the record values were recorded, ETH/USD did see a low of approximately 3725.00. Ethereum continues to demonstrate volatility and traders who enjoy emotional roller coasters are welcome to participate within its sphere. As of this writing, ETH/USD is near the 3890.00 vicinity, but this value is likely to change rapidly while swift trading conditions persist.
All-time highs have been accomplished on a regular basis by ETH/USD, and yesterday’s adventure over the 4000.00 mark should not go unheralded. Call the Ethereum market what you would like: a bubble, exuberant, frothy, jubilant or belligerent. Traders need to understand that technical charts certainly matter for ETH/USD, but they also need to understand the power of the behavioral sentiment being generated.
The question for speculators who want to continue pursuing the bullish momentum of ETH/USD is where to find a good launching ground for buying opportunities. Having stumbled from Monday’s all-time highs, traders are reminded that it is natural for reversals lower to take place as a reaction. Profit-taking may be a component of ETH/USD short term as speculators cash out winning positions.
Technically, support levels should be looked at via important junctures for a proper perspective taking into consideration the sweeping changes in value which remains a feature of ETH/USD trading. The marks of 3850.00 to 3800.00 do look like potential places for cautious traders to place limit orders below current values in order to try and take advantage of bounces higher. However, if ETH/USD begins to show durable trading above the 3900.00 value, it may be a signal that short-term resistance which is near 3950.00 may be targeted.
Because ETH/USD continues to operate within a strong bullish trend, if short-term resistance levels prove vulnerable, traders will again begin to aim for the 4000.00 value. This is where things can get interesting. If the 4000.00 level is penetrated again and is able to maintain this threshold, speculators of Ethereum will certainly believe record heights will be attained again.
Traders of ETH/USD are urged to use stop losses and manage their risk-taking tactics wisely. Volatile trading should be expected near term as Ethereum remains in the spotlight and speculative waves participate within its trading landscape.
Ethereum Short-Term Outlook:
Current Resistance: 3950.00
Current Support: 3835.00
High Target: 4091.00
Low Target: 3723.00
