ETH/USD has created a rather violent range band the past few days of trading, while accomplishing this within a rather tight middle ground. Resistance levels have proven rather sufficient and support levels have also held. ETH/USD has swung in values of hundreds of dollars and speculators will need to now choose what they perceive as the next direction.
As of this writing, ETH/USD is within the vicinity of 2555.00 and saw a low of around 2335.00 two days ago. The lower depth was produced unsurprisingly after ETH/USD actually achieved a high of nearly 2845.00 the day before. This move highlights the capable storms Ethereum is creating as the cryptocurrency trades fast and creates speculative opportunities for those who know how to use limit and take-profit orders, while protecting their positions with stop-losses.
Short-term traders should pay attention to the 2600.00 to 2650.00 junctures up above. If this resistance proves durable today, this may be an indication that further bearish sentiment is going to ignite and potentially retest lows again. The value of 2600.00 looks to be technically important because it represents the bottom of a higher price range demonstrated from the 31st of May until the 7th of June.
Speculators who believe more downside price action is a real possibility can use the 2500.00 mark as an inflection point. If short-term trading produces another tide of selling and ETH/USD breaks through this support juncture, conditions may become rather quick. The question of trading volume should be considered too as a sign of nervousness which remains within the cryptocurrency market. Selling volume appears to have increased when ETH/USD broke through the 2500.00 level on the 8th of June.
The current value of ETH/USD between 2500.00 and 2600.00 could prove to be an important trading zone for ETH/USD. There have been tests of lows and tests of highs in recent days without a serious breakout occurring in either direction. The rather turbulent short-term range needs to be given attention because this test of the middle ground will likely not be able to hold much longer and traders should be on the lookout for fast conditions near term. Selling ETH/USD on slight reversals higher may appeal to traders who believe further bearish conditions will be exhibited.
Ethereum Short-Term Outlook:
Current Resistance: 2633.00
Current Support: 2513.00
High Target: 2725.00
Low Target: 2395.00
