The past two days of trading have seen ETH/USD slow its record setting pace as it languishes within the higher value band of its record territory. Traders who have gone long ETH/USD in the past day may have had to endure an idling motion within the cryptocurrency as resistance above has proven to be rather tough. However, ETH/USD continues to stay within shouting distance of all-time highs.
In fact, it must be noted that ETH/USD was able to achieve new record highs yesterday as the price traded within the 1830.00 vicinity before suffering a reversal lower. Cryptocurrencies continue to see exuberant speculative trading as the digital currency market gets plenty of publicity from the media due to its astronomical rise in value the past three months.
Currently, ETH/USD is trading within the middle of its one-day range and its present juncture may be important regarding sentiment. Technically, if ETH/USD climbs above the 1765.00 level, it may serve as indicator for bullish speculators that another move upwards may be generated. Psychologically, the 1800.00 continues to be an important inflection point for ETH/USD. If the 1800.00 level can see sustained trading above this resistance juncture for a solid amount of time, it could certainly spark more bullish sentiment.
ETH/USD remains highly speculative; listing support and resistance levels with such wide gaps is done to show the amount of volatility the cryptocurrency can produce. Traders are warned to use conservative amounts of leverage and know that large valuation moves are common. Tactically speaking, if a speculative asset has the ability to gain vast sums of value in one day of trading, it also means the asset has the capability to falter and lose a huge amount of value quickly.
There is no denying the speculative bullish run of ETH/USD remains enticing. Traders with the desire to buy the cryptocurrency and look for higher moves cannot be faulted, but they must also use proper risk management and understand the risks involved. ETH/USD technically continues to show an ability to brush higher resistance levels aside and attain new record values. Speculators targeting the 1800.00 level above cannot be faulted for their short-term optimism, but they should also practice patience if their trading positions do not produce the immediate results desired.
Ethereum Short-Term Outlook:
- Current Resistance: 1798.00
- Current Support: 1688.00
- High Target: 1850.00
- Low Target: 1627.00
