Ethereum has produced another solid short-term trading cycle, approaching highs yesterday while remaining in sight of important resistance.
ETH/USD remains within the higher elements of its short- and mid-term price range. Ethereum has also been able to incrementally add to its support levels. In yesterday’s trading, ETH/USD touched the 3355.00 which came within sight of highs made one week ago. ETH/USD also continues to flirt with May values - yes, while Ethereum was descending from its all-time highs. However, the ability to begin nearing the realms of its May apex range technically could entice further buying.
As of this writing, ETH/USD is near the 3240.00 vicinity and if support levels continue to sustain values above the 3200.00 mark this may be a rather impressive bullish indicator. After hitting yesterday’s highs, ETH/USD reversed lower to nearly 3167.00 and the rather firm price which stayed above previous short-term lows of about 3130.00 is intriguing.
The recent bullish streak in ETH/USD has been demonstrated well during the month of August. Perhaps the most interesting aspect of recent trading is that gains have not been made in a wild fashion. There is a possibility that some speculative elements may still be waiting to join the party, if and when they become convinced this buying momentum can be sustained. The ability of ETH/USD to sustain its value near short-term highs and not suffer devastating reversals lower may prove to be attractive.
ETH/USD remains a bona fide speculative asset and there are no guarantees swift reversals lower will not occur. Traders need to acknowledge even if they are convinced they are about to step onto a potentially successful trend upwards that there is always a chance the speculative nature of ETH/USD can sputter without warning, and falls in value can prove vicious. Even as ETH/USD demonstrates its current positive trend, limited amounts of leverage and strong stop loss ratios should be used.
Current resistance for ETH/USD is nearby at 3275.00 and if this mark begins to be challenged and the 3300.00 juncture is surpassed, traders may believe another test of short-term highs is about to exhibited. Conservative traders who want to be buyers of ETH/USD may want to wait for reversals lower to engage their positions. If ETH/USD is able to break the 3300.00 and sustain its price above this ratio, it could spark a rather impressive short-term speculative buying surge.
Ethereum Short-Term Outlook
Current Resistance: 3276.00
Current Support: 3225.00
High Target: 3389.00
Low Target: 3165.00