After reaching a high of nearly 1342.00 on the 10th of January and then experiencing a strong wave of selling, ETH/USD has incrementally traversed higher again. As of trading this morning the cryptocurrency is approaching important resistance and is within sight of record highs. Speculators within ETH/USD who are used to volatility are likely eyeing higher targets and anticipating a challenge of these lofty values near term.
The ability of ETH/USD to sustain its higher value range the past couple of trading days and not suffer a volatile drawdown may also serve as a foundation for speculative belief the cryptocurrency has the ability to climb. Highs made early last week before the awkward reversal lower did come within reach of all-time highs ETH/USD achieved in January of 2018. A handful of cryptocurrencies are enjoying solid higher momentum and Ethereum as one of the better known digital currencies is attracting plenty of attention.
Traders who are tempted to buy into ETH/USD should understand volatility can roil unexpectedly and they should always be protecting their speculative positions with solid risk management. Long term cryptocurrency bulls have an adage which essentially reminds buyers to hold on for dear life and publish the mantra with the ‘HODL’ moniker, but this isn’t possible for all speculators and cashing in profits is often the name of the game.
ETH/USD has proven it has substantial speculative enthusiasm, but it is susceptible to sudden reversals lower like all cryptocurrencies. Traders should consider using current support as entry levels for buying positions if they are taking a conservative approach. Some traders may decide to only buy into an emerging trend upwards which is proving it has momentum, meaning they may want to place their buying orders above current market values.
Short term speculative fever seems to have created a foundation of strength with ETH/USD and technical traders may be inclined to be aggressive and buy. Traders should keep their eyes on resistance levels near the 1270.00 mark, if this juncture is punctured higher near term it could mean a test of high water marks experienced early last week will again be demonstrated and perhaps even surpassed.
Ethereum Short Term Outlook:
Current Resistance: 1270.00
Current Support: 1179.00
High Target: 1348.00
Low Target: 1088.00
