Ethereum has produced astonishing consolidated and tranquil trading results the past handful of days and this may attract speculators.
ETH/USD is trading near important mid-term highs not touched since mid-May, and speculators may become enticed by the rather tranquil waters the cryptocurrency has achieved the past handful of days. ETH/USD is trading near the 3350.00 vicinity and it has shown an ability to consolidate within its current price band while it tests important highs. Yes, this is Ethereum and volatility could erupt without any warning, but for now the sea is calm.
Skeptical traders who have been harmed before while pursuing buying positions, only to see storm clouds emerge and capsize their wagers causing them to watch their money float away have valid reasons to remain cautious. On the other hand, speculators who are accustomed to the yin and yang of cryptocurrencies likely accept the constant battle between the highs and lows within ETH/USD and abrupt price violence.
As Ethereum hovers near important resistance, market psychology will become important. From a technical perspective, if ETH/USD can topple the 3400.00 juncture and put in a real test of 3500.00, this would set off alarm bells within the broad cryptocurrency marketplace and allure more speculators.
Yes, ETH/USD could certainly trade lower. If speculators are tempted to fish for reversals they are encouraged to use adequate stop loss protection, because there is no denying the rather abundant upwards trend in ETH/USD.
If Ethereum does experience selling and the 3300.00 juncture does not hold as support, lower marks could quickly follow. The question and concern for traders should be about velocity. The recent consolidation of ETH/USD leads to a suspicion that a breakout may be getting ready to be demonstrated. Which direction will it be? Optimists may be inclined to believe higher marks are coming.
Conservative traders who want to remain buyers as ETH/USD shines a rather bright light cannot be blamed. Going long on slight moves downward which test the 3345.00 to 3330.00 marks may prove worthwhile. Experienced traders, however, know that this could lead to the possibility that trades will not be filled if ETH/USD doesn’t move lower in the short term. Therefore, potentially waiting for more momentum to be produced and actually use a buying position with a carefully selected entry point near current prices may also be the appropriate choice to pursue loftier value ambitions.
Ethereum Short-Term Outlook:
Current Resistance: 3380.00
Current Support: 3285.00
High Target: 3550.00
Low Target: 3225.00