ETH/USD had been performing remarkably well the past few weeks and was outperforming its major counterpart Bitcoin. However, the past handful of days has started to produce incremental selling, and ETH/USD is beginning to knock on the door of a dangerous technical zone. Speculators within the broad cryptocurrency market are exhibiting nervous sentiment and Ethereum should be treated carefully.
ETH/USD is currently trading near the 3540.00 mark, which is on the threshold of major resistance when a one-month chart is examined and the first week of May results are considered. After climbing to a high within the vicinity of the 4388.00 on the 12th of this month, ETH/USD has slipped to its current values. Yesterday’s trading fell to support levels of 3170.00 in fast conditions. What is important technically is that ETH/USD is testing results from the first week of May.
Speculators who remain bullish need to watch ETH/USD’s price action closely. If the current resistance levels of 3575.00 to 3640.00 prove durable, this could be a signal that ETH/USD may develop more downward pressure. If ETH/USD can surpass the 3640.00 mark, it may be able to find enough buying momentum to mount an attack on the 3800.00 mark up above.
However, from a risk/reward viewpoint currently, while taking into consideration the short-term trend of ETH/USD and the broad cryptocurrency market, traders may believe momentum actually may continue to be exhibited downward. Wagering on bearish trends within the cryptocurrency market the past six months has proven very dangerous and costly for most traders. If a speculator is going to sell ETH/USD, they are strongly advised to use stop-loss ratios which are constructed wisely.
The support junctures of 3440.00 to 3386.00 do look important. If ETH/USD is not able to sustain upwards movement near term and continues to stay within its price range from the first week of May, traders may aim for these price levels as legitimate bearish targets. Traders need to remember that ETH/USD is extremely volatile and momentum can shift in a hurry. However, in the short term, ETH/USD may actually be signaling that another leg downward is going to develop, and it may prove to be an opportunity for speculators to wager on selling positions.
Ethereum Short-Term Outlook:
Current Resistance: 3640.00
Current Support: 3386.00
High Target: 3850.00
Low Target: 3100.00
