The past five days for ETH/USD have produced a change in the trading landscape as the one month chart is challenged by a sudden downturn.
ETH/USD remains seemingly healthy and above the 3050.00 as of this writing, but this is the world of cryptocurrencies where many of the ‘experts’ work only in the boundaries of hindsight. While Ethereum is maintaining the higher realms of its one month chart and looks rather positive regarding this longer perspective, the five day chart paints a different picture. Speculators should enter the waters of ETH/USD with a touch of nervousness today.
Important psychological support may exist around the 3000.00 level for traders, and if this is broken and the 2900.00 mark begins to be toyed with, alarm bells may go off within the halls of speculative bears that enjoy trying to take advantage of downturns within ETH/USD. However taking into account ETH/USD’s rise the past month from the depth of lower despair, bullish traders certainly remain and they may believe that the reversals experienced the past handful of day is a natural part of the speculative environment.
Technically yesterday’s high of nearly 3301.00 was not able to surpass the previous day of trading, and the past few days have produced similar results. Incrementally ETH/USD has seen resistance levels decreasing, but they certainly have not done this in a vicious manner. Trading late last night did touch a low of nearly 2945.00 and the last time Ethereum saw this price was on the 9th of August.
Speculators with bearish perception should keep their eyes open and if they want to pursue selling positions may want to see further downward momentum generated. Or they might want to also watch existing short term resistance levels near the 3100.00 to 3125.00 junctures. If these nearby price points are not seriously challenged and the broad cryptocurrency market continues to bleed value, this could be a signal further weakness will continue.
However, ETH/USD has done remarkably well the past four weeks. The gains in the speculative asset have achieved a significant amount of gains. If the 3175.00 to 3200.00 levels begin to come within sight cautious investors may believe additional highs can be produced near term. The key junctures early today are the 3000.00 to 3100.00 ratios as support and resistance. Day traders may be tempted to aim for prices slightly above 3000.00 and slight below 3100.00 as targets for short term speculative positions.
Ethereum Short Term Outlook:
Current Resistance: 3125.00
Current Support: 3000.00
High Target: 3250.00
Low Target: 2912.00