ETH/USD achieved record highs on Wednesday and then produced a reversal lower. After touching 3556.00, ETH/USD has dipped to a low of nearly 3405.00 as of this writing, but traders should actually look at the slight move downwards as a healthy reaction for Ethereum. Rockets do tend to eventually run of fuel and need to come back down to earth, so ETH/USD should not be considered a one-way ride by speculators. Traders need to accept that the potential exists for propulsion via speculative forces to run dry eventually.
The question is, when will ETH/USD begin to run out of momentum? The quick answer is perhaps not quite yet. A five-day perspective of Ethereum demonstrates a robust lift and new highs being produced fairly reliably. Resistance via short-term technical indicators is very close to the record values achieved yesterday. As for concerns regarding support levels, curiously they have remained rather steady and have likely provided fortunate traders a level of comfort.
However, traders need to understand the dynamics of the value changes within ETH/USD. Daily moves of nearly one hundred to two hundred dollars and sometimes more are not uncommon. The notion of "what goes up must come down" should be kept in mind. While it is nice and perhaps inspiring to watch Ethereum mount record values consistently, there may come a day when prices decline and begin to penetrate important support levels.
As ETH/USD begins trading today, speculators may be proven correct to believe that ETH/USD has further upward mobility. Short-term support near 3385.00 can be considered a rather interesting juncture. Cautious traders may try to use this value as a place to actually ignite their buying positions. Aggressive traders may believe that that mark will not be touched short term, choosing to enter the market within the current values which are testing short-term technical support ratios now.
The use of limit orders in ETH/USD remains very urgent. Ethereum is quite capable of spiking in directions which are not anticipated, which often causes destructive results for traders, who whimsically use live market orders with the mere hope that everything will turn out alright.
ETH/USD continues to look like a buying opportunity near term. The bullish trend has been steady and, until a strong move downwards changes speculative sentiment, going long ETH/USD remains a worthwhile wager.
Ethereum Short-Term Outlook:
Current Resistance: 3540.00
Current Support: 3385.00
High Target: 3649.00
Low Target: 3282.00
