ETH/USD has produced a rocky avenue for speculators the past week and its future path may prove to be challenging in the short term.
As of this writing, ETH/USD is within the vicinity of 2600.00, and traders should compare this to the price that is being traded when they read this article. Conditions within the cryptocurrency market remain ultra-fast as values fluctuate amidst a rise of nervous sentiment. Volatility is nothing new for ETH/USD, but its price range the past week has been extraordinarily wild and witnessed mid-term support being tested.
After slinking to a mark near 1750.00 during the weekend, ETH/USD has vaulted higher and saw a mark of approximately 2750.00 in early trading today. If one thousand USD moves are your thing and your trading account can tolerate percent fluctuations of 30% in one or two days, then please open the door to ETH/USD, because this is what you may experience.
Resistance near the 2740.00 to 2782.00 junctures does look important. The bearish move within Ethereum should be given a proper amount of respect. While many within the world of cryptocurrency are certainly proclaiming that dips should be bought, traders need to make a decision regarding the potential and dangers of reversals and block out the noise. Yes, ETH/USD has managed a very solid climb the past day-and-a-half, but until these resistance levels are punctured higher, bullish traders may want to remain a spectator if they are conservative.
Certainly, there are aggressive traders who believe they can take advantage of the current resistance levels with a buying position. If they are capable of getting into ETH/USD around the 2575.00 to 2600.00 junctures and aim for resistance as a take-profit location, they cannot be blamed for their thinking. However, bearish speculators who believe support will be tested again and proven vulnerable may view these same junctures as a place to launch short positions and target the 2500.00 to 2475.00 marks as a take-profit area for their short positions.
Traders are urged to carefully choose the amount of leverage they are using when trading ETH/USD. Limit orders should be mandatory also as a risk-taking tactic to protect against price fills, which will be influenced by the volatile trading conditions. As for a decision regarding a speculative wager, until ETH/USD proves it has the endurance to create a steady climb higher, selling Ethereum on slight reversals higher within its current price range may prove to be the right decision.
Ethereum Short-Term Outlook:
Current Resistance: 2782.00
Current Support: 2477.00
High Target: 2937.00
Low Target: 2202.00