ETH/USD has broken higher and is challenging values it has not traversed since the middle of May, and speculators may be dreaming about larger values.
ETH/USD is trading above the 3700.00 ratio in early trading this morning. Price action as Thursday got underway saw a value of nearly 3840.00 and price velocity is showing signs of exuberance. The ability of ETH/USD to add fast value at its current heights will cause speculators to become attracted to the cryptocurrency and perhaps dream of larger gains. On the 12th of May, ETH/USD traded near all-time prices of 4380.00.
Trading volumes during the spike earlier today saw a giant leap. Incrementally, ETH/USD has been certainly demonstrating a bullish trend and today’s dash upwards stands out. Technically, some speculators may get nervous because of the sudden bounce, and believe a natural cycle down will develop. However, trying to time reversals in the cryptocurrency world can often be dangerous.
Support levels have certainly been durable and traders may consider the 3700.00 mark as a new ratio after the motion created higher in the past handful of hours. Speculators who are contemplating additional moves upward will have to pull out a six-month chart to inspect May price action when ETH/USD was able to create its record values. Intriguingly, this breathtaking move higher in Ethereum is outperforming Bitcoin short term.
If the 3800.00 resistance level is penetrated, it may be logical that speculators start to dream about the 4000.00 juncture. However, for ETH/USD to accomplish this loftier feat, trading will need to intensify and, although that has taken place already today, the question is if it will happen again in the short term. Yet, there is the consideration that having a long position which is already profitable can be protected by using trailing stop losses which would protect gains already made in a trade.
Traders who want to jump into the ETH/USD bullish trend are advised to be careful as always. There are no guarantees the current price action will stay positive. Using logical stop losses and making sure conservative amounts of leverage are being used is necessary.
Ethereum has certainly delivered solid results the past couple of days as it has surged higher off of a rather steady consolidated range. Buying positions may want to be considered on slight reversals lower and traders should use entry point execution to get into positions to make sure the market doesn’t provide them with a nasty fill if conditions have become too fast.
Ethereum Short-Term Outlook
Current Resistance: 3800.00
Current Support: 3725.00
High Target: 3975.00
Low Target: 3582.00