ETH/USD has produced violent trading the past few days for speculators. Yesterday’s fall in value to 1400.00 was tested twice, but Ethereum has been able to mount a climb in the past twelve hours and is now traversing within sight of the 1700.00 price. If traders have somehow forgotten cryptocurrencies are speculative, they have been starkly reminded. It was only four days ago that ETH/USD was trading above the 2000.00 juncture.
Intriguingly, the record-high price of ETH/USD has seen a rather steep decline certainly, but it has also produced a fight higher in the past day. Upon the ability of support levels below holding their early February values, Ethereum is again within striking distance of all-time highs given its capability to track fast when speculative forces are engaged.
Traders need to trade ETH/USD using limit orders. While entering a market order and wishing on a polite price fill may feel the easy road to pursue, this is highly discouraged because of the ability of ETH/USD to springboard surprise surges upwards and downwards. Cryptocurrencies are within the midst of a rush by speculators to trade and this causes valuations to move quickly.
ETH/USD has certainly enjoyed a solid and exuberant bullish market the past four months. Yesterday’s tests of important support levels is a warning sign that prices can be volatile. However, the ability of ETH/USD to hold its ground and produce a climb higher may prove attractive to speculators who believe ETH/USD may have another push higher to achieve short term.
Short-term speculators should keep their eyes on resistance levels near the 1700.00 mark; if this value is punctured higher and prices are sustained, another move upwards may be in the cards as traders aim for loftier targets. However, traders need to monitor their positions persistently under the present trading conditions, which have been stormy.
If ETH/USD can maintain its current support levels near the 1650.00 to 1600.00 junctures without experiencing a violent sell-off below these values, short-term traders may feel that another leg up is a possibility near term. The use of take-profit and stop loss orders are strongly advised when trading ETH/USD today.
Ethereum Short-Term Outlook:
Current Resistance: 1708.00
Current Support: 1609.00
High Target: 1776.00
Low Target: 1531.00
