Ethereum has seen its week-long consolidation end as ETH/USD has tested short-term lows and remains within sight of important support.
ETH/USD had maintained a rather durable value band the past week of trading with limited volatility. However, after falling below the 3200.00 yesterday, ETH/USD is within sight of important support as it now trades near the 3100.00 threshold. The strong move higher by ETH/USD the past month has certainly achieved successes for bullish traders, but if the cryptocurrency were to engage the 3000.00 level below it might set off warning signs.
ETH/USD does remain near the top its one-month chart and current values are still traversing within values last experienced in May of this year. Perception, as always, will play a critical role in speculative decisions for short-term traders as ETH/USD explores it current price environment. Resistance levels are still close, around the 3175.00 ratio and if they begin to be flirted with and the 3200.00 juncture is toppled again in the short term it could prove to be a positive indicator.
ETH/USD must be treated carefully by speculators, because its recent consolidation and subsequent selloff could be a bearish signal. Technical traders should certainly watch the 3100.00 ratio and, if it proves vulnerable and the price of ETH/USD continues to slide, there is little doubt that some traders may begin to eye the 3000.00 as a reasonable target.
Reversals are a common theme in trading, and within cryptocurrencies the thrills and spills are accepted. The current price ratio of ETH/USD suggests the likelihood for larger moves may be developing and the recent selloff could be worrying.
However, if ETH/USD were to fall in value more and test the 3000.00 mark below, there is a possibility this could prove to be positive for Ethereum. If this important psychological level were to prove strong it would maintain the current price band for ETH/USD and could reflect the potential for additional moves higher. The bullish trend of Ethereum remains intact mid-term and, until the 2975.00 is sincerely tested, traders may remain confident that short-term sell offs are simply part of the natural movements of the speculative asset.
Traders who remain with buying perspectives may prefer to be cautious in the short term. It appears ETH/USD may test lower support levels near the 3075.00 to 3025.00 ratios, but if these lower prices can be sustained then it is entirely possible that a rather intriguing reversal higher could be ignited.
Ethereum Short-Term Outlook:
Current Resistance: 3171.00
Current Support: 3093.00
High Target: 3279.00
Low Target: 2955.00