ETH/USD is set to begin its trading in October beneath values that it began the month of September with, and importantly is flirting with crucial support levels.
The month of October is set to begin with ETH/USD trading near the 3000.00 ratio, but this doesn’t tell the whole story. On the 1st of September, ETH/USD enjoyed a day of bullish activity and climbed towards the 3800.00 juncture and, on the 3rd through the 7th of the month, flirted with 4000.00. Since reaching these highs, ETH/USD has slumped and correlated to the broad cryptocurrency market. Importantly on the 31st of August ETH/USD was trading near the 3360.00 level and was in the midst of a solid bullish run higher coming off lows seen on the 20th of July of approximately 1700.00.
It appears ETH/USD will begin its October trading below important August values, which proved the cryptocurrencies widespread ability to regenerate bullish momentum after suffering a devastating sell off in the late spring and early summer. The highs of early September excited the market and ETH/USD came within sight of all-time highs achieved on the 12th of May near a value of 4360.00.
However, the current price of ETH/USD is likely stirring up negative sentiment as it traverses near important support seen in the first week of August. In fact, the past week of trading has seen a handful of tests near the 2750.00 ratio, but reversals higher have been produced thus far when this mark has been challenged.
As ETH/USD continues to flirt in a negative way with the 3000.00 juncture speculators are certainly watching technical considerations. If the current price of Ethereum continues to consolidate and stay below the 3000.00 juncture this can be viewed as a bearish signal. Having produced a low of nearly 2650.00 in fast trading conditions on the 21st of September, traders may believe another swift downturn is possible if behavioral sentiment remains fragile.
As ETH/USD currently trades near important support ratios, there is also evidence that transactional volumes are decreasing. The lack of strong reversals higher off the lower depths now being tested, in addition to seemingly weak buying coming into ETH/USD, may be another piece of evidence that further downside momentum may be demonstrated. Traders who have been pursuing bearish positions of ETH/USD also can look at the inability to seriously challenge resistance levels above as a selling indicator.
ETH/USD Outlook for October
Speculative price range for ETH/USD is 1942.00 to 3700.00.
The bearish trend within ETH/USD demonstrated the past handful of weeks has quieted a lot of the influencers who were embracing the notion of new all-time highs sooner rather than later. After achieving a solid high early in September near the 4000.00 mark, ETH/USD has lost nearly 25% of its value. Traders should take this into consideration when they are contemplating the pursuit of speculation on ETH/USD.
Selling ETH/USD on slight reversals higher which do not penetrate important resistance may be a way to ignite orders and pursue further downside momentum. If ETH/USD begins to test the 2900.00 mark, another test of the 2800.00 to 2600.00 ratios could develop quickly. If the 2700.00 level does prove vulnerable and values are sustained below this ratio, additional selling pressure could develop within ETH/USD swiftly.
Traders who are anticipating a reversal higher off of current lows certainly have historical data to back up this type of buying wager. However, ETH/USD has been under a serious bearish trend and until resistance levels are brushed aside with velocity, traders who are long Ethereum are encouraged to cash out winning positions before they vanish into thin air. If ETH/USD is able to climb and break the 3300.00 level and then challenge the 3500.00 it would be a solid buying sign if values can be sustained above these marks for a good duration of time.