ETH/USD is challenging short-term support, and nervous sentiment has found little reason to suddenly become optimistic via speculative trends.
As of this writing, ETH/USD is hovering slightly near the 3100.00 level as the cryptocurrency continues to track lower and correlate to the broad digital assets market. Speculative bulls seem to be missing from action regarding the capability to spark a strong and durable reversal higher. Yes, ETH/USD certainly manages upwards ticks in value, but the price action remains suspiciously weak and support levels are being eyed nervously.
Speculative bears who have been selling ETH/USD may be skeptical about the ability of Ethereum to maintain its downward trajectory too for much longer. For non-aggressive traders perhaps patience will prove to be worthwhile if they only want quick hitting trades. This could be accomplished from a conservative viewpoint by waiting for ETH/USD to challenge nearby resistance technically, and then igniting short positions to try and gain from reversals which are believed to be possible.
If ETH/USD is not able to sustain a true price above the 3100.00 today, this would be a warning side additional selling momentum could build. On the 10th of January ETH/USD was trading near the 2925.00 mark after being hit with strong downward trajectory. ETH/USD was able to climb and fight towards highs approaching 3400.00 on the 13th, 14th and 16th, but headwinds remained stiff and pushed the cryptocurrency downward again.
ETH/USD is not only challenging short-term support right now, but it appears vulnerable. Unless very durable support suddenly emerges, there is reason to imagine the 3000.00 level could be a potential target for larger sellers as a price target. ETH/USD remains extremely capable of producing massive volatility. If the 3000.00 level were to be broken and prices can be sustained beneath this important psychological ratio, aggressive traders could begin to target lows accomplished a bit more than a week ago.
Traders who believe ETH/USD is oversold and want to be buyers, thus betting against the current trend, should use well-defined stop loss orders for protection. The trend for ETH/USD has been bearish for a while and the short term reversals higher have failed to be long lasting. Sellers may want to remain cautious, but for speculators looking to wager on ETH/USD the downside in the near term continues to look like the logical choice for speculative adventures.
Ethereum Short-Term Outlook
Current Resistance: 3182.00
Current Support: 3080.00
High Target: 3287.00
Low Target: 2890.00