After challenging and achieving new highs early last week, ETH/USD has seen value incrementally lower as support gets tested.
ETH/USD has experienced a whirlwind of value the past week. After achieving new record highs early last Monday, the cryptocurrency fell in value and tested a short-term low within sight of 1200.00 only three days later. While backers of ETH/USD may be inclined to say correctly that the cryptocurrency remains within the higher realms of its value, skeptics may be getting nervous at these heights.
ETH/USD has experienced a strong bullish trend, and remembering that the cryptocurrency began January trading near the 745.00 mark is important. Has it been too much, too soon for ETH/USD? Last Monday, hitting a new all-time high and traversing momentarily near the 1475.00 level was impressive. The question speculators need to ask is if the bullish trend can be sustained.
Short-term resistance near the 1360.00 mark should be monitored; if this level is punctured higher and a quick test of 1392.00 ensues, it could set off another test within the 1400.00 landscape, which would cause further speculative bullish alarm bells. However, if support near the 1300.00 level is broken lower, it could startle ETH/USD traders into believing that the cryptocurrency is about to see more selling momentum be demonstrated. Volatility is known and an expected component when trading cryptocurrency; speculators need to always use risk management.
The broad markets globally have seen a strong dose of buying the past couple of months, equity indices are still within high territories and other speculative assets have seen optimistic rises in value. In the past couple of weeks, though, a cautious attitude has begun to incrementally enter behavioral sentiment and it would not be surprising to see traders wonder if now is the time to cash in profits.
If speculators start to grow more conservative and have winning positions they are able to cash in, ETH/USD may be part of this trading perspective. The cryptocurrency did manage to make all-time highs last week, but speculators may perceive that the cryptocurrency has achieved a remarkable run in the past month and suspect that ETH/USD has the potential to consolidate or trend lower short term.
Selling ETH/USD if it breaks current support levels may prove an enticing speculative decision. Targeting lower values within the 1275.00 to 1266.00 junctures below via a short position may prove a solid speculative trade.
Ethereum Short-Term Outlook:
- Current Resistance: 1360.00
- Current Support: 1301.00
- High Target: 1392.00
- Low Target: 1266.00