ETH/USD has produced a strong leg downwards overnight and early this morning as support levels continue to appear vulnerable.
ETH/USD is trading beneath the 1900.00 juncture in early trading this morning; in fact, the cryptocurrency is trading close to the 1875.00 mark. Intriguingly, the move which has been produced in the past day has taken place in a rather strong manner and light transaction volumes. Worrisome for potential bullish speculators perhaps is the notion that ‘value’ buyers have not shown up to save the day yet.
ETH/USD is traversing dangerous support. If these lower levels continue to be tested, some aggressive speculators who are sellers may be looking at one-month charts and eyeing values seen on the 22nd and 26th of June when the cryptocurrency traded below the 1700.00 ratio. While influencers may attempt to scream that now is the time to step into ETH/USD and other cryptocurrencies, experienced traders may be skeptical and believe there is further room to explore downwards.
Current support appears to be the 1849.00 mark, and if this proves weak and the 1825.00 to 1800.00 barriers crumble, ETH/USD could produce more turbulence lower. Resistance levels have continued to incrementally lower and proven hard to penetrate upwards. The ability of the lower price range in ETH/USD to establish sustainability is a troubling bearish indicator too.
Yes, traders who believe a reversal higher will ensue short term and the 1900.00 to 1950.00 levels will see sunshine once again may not be wrong, but if buying positions are pursued solid risk management is urged. The broad cryptocurrency market remains on weak footing and, until trading volumes show signs of building, sellers may feel emboldened as they challenge buyers to step into ETH/USD and stop the bleeding. Negative sentiment combined with technical charts which highlight that critical support levels are in danger remains difficult to interpret in a positive manner.
ETH/USD certainly is trading near important lows, but traders may want to continue to pursue selling positions of the cryptocurrency. Conservative traders may want to wait for current resistance levels to come within sight on slight reversals higher which are likely to be demonstrated occassionally. Traders are urged to remain alert when taking ETH/USD positions because the current values could potentially set off a fireworks display if important support levels remain under pressure. Wagering on bearish momentum to continue in ETH/USD is a logical wager while Ethereum’s trend remains identifiable.
Ethereum Short-Term Outlook:
Current Resistance: 1921.00
Current Support: 1849.00
High Target: 2036.00
Low Target: 1723.00