After testing important support this weekend, ETH/USD has again managed to produce a slight move higher and bearish speculators should be intrigued.
ETH/USD has produced a slight climb higher the past day, after stirring within the depths of crucial support early in the weekend. As of this writing, ETH/USD finds itself near the 2500.00 value as it seemingly struggles to display the potential for additional momentum higher. ETH/USD remains within the bottom of its price range, and traders who are still embracing a bullish outlook are likely looking for Ethereum to move above the 2550.00 to 2600.00 junctures before they proclaim a turnaround.
In fact, ETH/USD has produced several reversals lower the past few weeks after moving higher, and has not been able to break free of rather durable resistance levels. This doesn’t mean the days of glory are gone for ETH/USD; volatile gains will certainly be seen again.
However, for the moment, there is little to backup an abundance of optimism. Yes, ETH/USD has climbed higher when it has hit support levels, which may be comforting for technical traders who are buying near the lows and attempting to scalp value when a bounce upwards is achieved. But resistance has produced lower moves on a regular basis the past few weeks and until proven otherwise, why bet against the trend?
Short-term traders should continue to use resistance levels as a place to consider speculative selling positions. The 2550.00 to 2700.00 has proven difficult to penetrate higher. Yes, these values represent a huge difference in cash positions, particularly if a massive amount of leverage is being used. Traders need to understand that the dynamic price of Ethereum remains rampant and risk management needs to be practiced at all times.
From a risk/reward standpoint, technically it appears there is still more room to traverse downwards compared to a brisk move higher. There is no doubt that sentiment could shift quickly and prove that negative statement wrong. However, in consideration of the past month of trading in ETH/USD, bearish tendencies remain easier to see via technical charts.
ETH/USD remains within a loud trading environment. If the 2500.00 level is not able to be maintained and values start to incrementally decrease, traders cannot be faulted for believing support levels are going to be tested again. If the 2475.000 value fails to hold back the tide, ETH/USD traders cannot be blamed for believing the 2425.00 to 2375.00 junctures will again become targets.
Ethereum Short-Term Outlook:
Current Resistance: 2550.00
Current Support: 2475.00
High Target: 2626.00
Low Target: 2375.00