ETH/USD is set to begin the month of August having reversed its mid-term trend momentarily as the important resistance comes into focus.
ETH/USD hit a low of nearly 1700.00 on the 20th of July which tested lows seen nearly one month before on the 25th of June, but the cryptocurrency has been able to reverse higher and is near important resistance now. As of this writing, Ethereum is near the 2400.00 mark and its rise since touching the July lows may spring bullish speculators into an optimistic mode.
Intriguingly and perhaps dangerously, ETH/USD did trade at nearly these exact highs also on the 4th and 7th of July. The last time ETH/USD traded substantially above the 2400.00 juncture was in the middle of June when it traded at a high of nearly 2655.00 on the 15th of that month. Prior to making that high in the midst of it prolonged bearish slide, ETH/USD traded near 2250.00 on the 12th of June. The price action within ETH/USD remains questionable and depending on the technical bias of a speculator, decisions regarding coming direction is challenging.
Traders should be careful to consider their own bias before making their choices regarding positions with ETH/USD. The current resistance level is important, and if the 2400.00 can be sustained and punctured higher, along with a positive amount of sentiment coming from the broad cryptocurrency market this could certainly spur on more speculative buying.
The question regarding the short-term trend which has been bullish since the 20th of July is if the momentum upwards can be sustained. Traders who have been pursuing ETH/USD with short-term wagers are welcome to continue doing so, and speculating on one-day trends may actually prove to be worthwhile. Having suffered through an onslaught of bearish trading since the second week of May, Ethereum is almost definitely going to face additional choppiness moving forward and short-term trades could prove to be effective.
Technically, ETH/USD is within a crucial short-term price point. Clearly the 2400.00 level will be a key psychological barometer to view, and what happens in the coming week could have an impact on the results for August in a large manner. In order to generate more positive sentiment within Ethereum, puncturing the current price level of ETH/USD and sustaining higher marks may wash away existing nervousness which speculators who favor taking buying positions may still be confronted with via their own sentiment.
ETH/USD Outlook for August:
Speculative price range for ETH/USD is 1650.00 to 3100.00.
If ETH/USD can surpass the current resistance junctures above of 2400.00 to 2600.00 this could prove quite positive for the cryptocurrency. After being beaten backwards in June and early July when reaching resistance levels however, traders who remain skeptical about ETH/USD’s ability to maintain higher motion may actually want to sell the cryptocurrency if they believe resistance remains durable. A potentially key indicator for ETH/USD bears may be the 2250.00 level. If this juncture is tested and is not able to hold and the 2200.00 mark also falters, it would be a signal that more tests may be coming with lower values. If a solid amount of selling velocity builds again in ETH/USD and the 2000.00 mark is dismantled, traders should not be surprised to see potential new lows challenged in August.
If the 2400.00 to 2600.00 junctures are surpassed and positive bullish momentum builds, this could certainly create additional buyers to step into ETH/USD who may tempted to believe the mid-term trend has finally changed path. The 2700.00 to 2800.00 marks will prove important if tested. If these higher resistance levels can be penetrated and buying volume increases, a move towards 3000.00 could be achieved rapidly. Any sustained trading above the 3000.00 juncture may be enough for bullish speculators to begin believing sunnier days are ahead again for Ethereum.