As of this writing, ETH/USD is trading near 1760.00 and downside pressure has added velocity in the past day. Speculators who have been tempted to buy ETH/USD based on the assumption that a volatile move upwards would be attained merely because Ethereum has slipped so badly and reversals are due to happen are likely seeing very bad outcomes. Support levels continue to look volatile and short-term resistance is suddenly the 1800.00 ratio, and if this higher value is not punctured upwards soon it could feed into more nervous sentiment developing technically.
Adding fuel to the speculative bearish fire that is consuming ETH/USD and the broad cryptocurrency market is a lack of buyers. Yes, that may sound like an obvious statement, but if influencers cannot amass their legions of buyers at these ‘cheaper’ prices across the cryptocurrency world, it may mean a swarm of speculators are anticipating more downside price action.
Astonishingly, ETH/USD is still trading near price points it traversed in March of this year, which means the cryptocurrency is still above its pre-bubble phase which gathered tremendous momentum in January. The intriguing aspect for ETH/USD is that it may still have room to find additional bearish activity. Speculators who are assuming a bullish move higher is going to happen and are wagering on this outcome, may find that headwinds continue to make buying the cryptocurrency a troublesome and expensive wager.
Traders should watch support near the 1720.00 juncture; if this ratio starts to be tested and proves vulnerable it could indicate that another wave of bearish activity is going to develop. The question speculators are likely asking is when ETH/USD will start to attract buyers who believe it is too cheap. However, the best tactic is not to go against the trend which has clearly been established. The past few months have consistently produced bearish momentum and, until ETH/USD proves capable of sustaining a drive higher, there is little reason to wager on upside action.
The short term may produce volatile price action for ETH/USD. The ability of Ethereum to crash below the 1900.00 and 1800.00 junctures and not demonstrate an abrupt reversal higher indicates technically that bearish sentiment remains steadfast. Selling ETH/USD on small reversals higher and aiming for values below remains the logical speculative decision.
Ethereum Short-Term Outlook:
Current Resistance: 1803.00
Current Support: 1721.00
High Target: 1850.00
Low Target: 1652.00
