ETH/USD has extended its bullish momentum, and in early trading this morning is positioned near record heights as speculators dream big.
ETH/USD is again pursuing record values and has brushed aside resistance with ease. As of this writing, ETH/USD is trading near the 4820.00 level with fast conditions being maintained. However, it should be noted that the short term has not produced many violent reversals lower.
Certainly, ETH/USD moves downward and speculators need to acknowledge this point, but the momentum upwards has been rather convincing in the short term. It is a question of making sure your stop loss ratios are not too tight and that your position is allowed to stay open in order to pursue target prices.
A morning low of nearly 4780.00 was demonstrated a few hours ago, but this was followed by another record value which saw the 4840.00 mark tested. Current technical resistance can be perceived around the 4850.00 ratio, but this is open to debate because it is a record value too. Short-term traders who pursue mere ten to twenty dollar moves in ETH/USD are not common; trying to scalp Ethereum is difficult because of transaction fees. Therefore, having a goal of 4845.00 to 4850.00 is not unreasonable.
Just three days ago, ETH/USD was trading near the 4325.00 mark, showing the cryptocurrency has continued to mount a rather serious move higher. Speculators likely are whispering the 5000.00 mantra in their heads as they look at ETH/USD charts. The trend has been rather remarkable for Ethereum and that is saying a lot since the words ‘exuberant’ and ‘bubble’ have often shadowed its trading.
Trying to ride the ETH/USD train to new highs cannot be faulted, but traders need to understand that extreme volatility could break out at any time. If a move lower were to happen, short-term support does appear to be the 4755.00 mark; if that is broken, another possible roadblock if violent conditions are exhibited could be the 4640.00 level.
Remaining a buyer of ETH/USD continues to feel like the correct wager near term. Risk management should be practiced by all traders. Solid stop losses that allow a position to maneuver are important meaning the use of conservative leverage should be considered, so semi-strong moves against a chosen position does not destroy a trading account. Traders who believe ETH/USD may have additional room to traverse higher cannot be faulted as record values continue to be demonstrated in the short term.
Ethereum Short-Term Outlook
Current Resistance: 4850.00
Current Support: 4755.00
High Target: 5000.00
Low Target: 4642.00