ETH/USD is trading near one-month highs and its ability to gain over the weekend and test stronger values will certainly get the attention of speculators. Ethereum has suffered the past few months and, on the 20th of July, ETH/USD was trading near the 1700.00 value. On the 25th of June, ETH/USD also traded near lows of 1700.00, but on the 7th of July, Ethereum tested the 3400.00 mark and above briefly.
As of this writing, ETH/USD is trading near the 2360.00 level in fast conditions. Traders who decide to participate in ETH/USD and are anticipating another move up, with the hope that this strong wave to better values will continue, should remain cautious. The highs of the 5th and 7th of July should be looked at on technical charts and taken into consideration. Certainly ETH/USD has achieved a successful reversal off of lows, and the gain of nearly 700.00 USD in one week is significant, but traders should ask if this momentum can be sustained.
Resistance levels near the 3385.00 level should be monitored; in actuality, the price is extremely close to current values. If this mark is challenged and punctured higher and ETH/USD begins to test the 3400.00 ratio, the highs of the 7th of July near 3414.00 should be watched very carefully. Having served as a spot which saw a reversal downwards begin to occur, traders may want to see these early July highs punctured higher before they step onto a train which is ‘promising’ another route upwards.
There are no guarantees when trading. Wagering on short-term movements within cryptocurrencies is a volatile affair which must be done with extreme care. The nervous sentiment which has been a force within ETH/USD the past few months is not forgotten and traders need to decide if now is the time to become buyers once again and search for an optimistic trend. Conservative traders who like to buy on momentum may want to see technical resistance proven vulnerable before starting to go long ETH/USD.
Ethereum is within a dynamic price range. It is hovering slightly below important resistance levels which have proven strong the past couple of weeks. If a speculator wants to buy, they should use solid stop loss orders to protect against a sudden reversal lower. Traders who want to sell ETH/USD at these heights should be nervous too. Risk management will be the key and all market participants need to be ready for volatility.
Ethereum Short-Term Outlook:
Current Resistance: 2383.00
Current Support: 2285.00
High Target: 2414.00
Low Target: 2079.00
