ETH/USD remains within a transfixed euphoric bullish run and is trading slightly below record values as fast market conditions dominate its trading landscape. Exuberance, bubble and roaring are words that describe the incredible amount of buying ETH/USD has experienced the past few days. It’s not every day that resistance is the all-time value for a speculative asset. Traders are cautioned to take a deep breath before trading Ethereum.
However, while you are taking time to find a moment of inner peace before opening your ETH/USD position, you may miss the next rally higher. Yes, the market can go south, too, and prices are moving fast enough that simply attempting to post a one-day technical chart of ETH/USD feels quite foolish. The reality of ETH/USD's lightning status needs to be given attention. Slight reversals lower are part of Ethereum’s trading.
Why has ETH/USD become red hot, and why are people actually starting to ask if Ethereum is a better speculative asset than Bitcoin? Ethereum is not a new blockchain and it has always had a huge amount of supporters who believe its underlying technology and code are better than Bitcoin. We are not here to debate these points. Instead, technical traders can simply consider the notion that ETH/USD is on fire and might be attracting new speculative wagers because it is viewed as a more cost-efficient bet. ETH/USD is significantly cheaper than BTC/USD to trade psychologically and this may be adding to its allure.
From a risk/reward viewpoint, depending on the amount of leverage being used, ETH/USD, within its present speculative mood, offers the opportunity for a larger percentage change in value compared to BTC/USD. All of this, it should be noted, adds to the increasing dangers ETH/USD traders face as they open their positions and participate.
So what should you do? Being a speculative seller at the present time in ETH/USD should be a consideration only for those who have the emotional fortitude and deep pockets needed to wager against the massive bullish trend being demonstrated.
Buying ETH/USD and aiming for higher targets, record values and more sunshine is the best wager. However, traders should remain logical. Limit, take-profit and stop-loss orders should be used when attempting to go long on ETH/USD. Conservative traders might want to wait for reversals lower before attempting to buy, but they might also miss the speculative race which seems as if it wants to go higher.
Ethereum Short-Term Outlook:
Current Resistance: 3450.00
Current Support: 3265.00
High Target: 3600.00
Low Target: 3130.00