ETH/USD has begun today’s trading with another bang that is certain to get the attention of speculators. This morning’s first rather polite move was a climb higher to the 1881.00 level which was a value not seen since the 22nd of February. However, after this move to short-term high water marks, ETH/USD spiked downwards a bit more than one hundred USD to a level of 1760.00 approximately. The action was swift and violent, just like speculators of cryptocurrencies have grown to expect.
After the defiant move downwards, ETH/USD has begun to incrementally rise again and its current price vicinity is over 1800.00. Since making a low of nearly 1290.00 the last day of February, ETH/USD has been able to climb higher and it is hovering within shouting distance of important resistance levels. Incrementally, ETH/USD has also proven resistance vulnerable the past few days with strong upwards price action.
The broad cryptocurrency market has strengthened since the beginning of March. Fundamental analysts within the digital currency market sphere have sometimes made the claim that Ethereum and its major counterparts have seen more buying as a response to the US stimulus legislation which was talked about and then passed last week. This because some believe the buying of Ethereum is a method to buy an asset which has the ability to rise in value if inflation suddenly emerges globally.
Technical traders should continue to monitor broad sentiment in the cryptocurrency world. There is no denying that ETH/USD is once again lurking within eyesight via mid-term charts of all-time highs. This morning’s move upwards brought ETH/USD close to the 1900.00 marker. If resistance junctures of 1846.00 to 1890.00 begin to be tested, this could set off a fast wave of additional speculative buying within Ethereum by traders who are wagering on fresh highs being asserted.
Today’s early trading is another reminder for speculators that they have to use limit orders when trading ETH/USD. Particularly important is the use of stop loss positions when big amounts of leverage are being used. Broad sentiment within cryptocurrencies continues to look rather jubilant, but ETH/USD and other digital currencies have a nasty habit of surprising traders quickly when they are unprepared. Buying ETH/USD on dips which test short-term support levels may prove enticing for speculators today.
Ethereum Short-Term Outlook:
Current Resistance: 1846.00
Current Support: 1781.00
High Target: 1890.00
Low Target: 1707.00
