ETH/USD has produced record highs and its ability to soar higher while roaring within the media continues to make Ethereum a speculative asset worth considering. Traders should acknowledge before buying ETH/USD this remains a dangerous asset which can produce quick fires and results that are not welcome if reversals lower occur. Risk management must be used and speculators cannot simply enter a buying position and count on sure profits.
The use of the word ‘buying’ should be highlighted too from the above sentences, because selling ETH/USD at this moment is not exactly fashionable, nor the dominant trend. Traders who want to sell ETH/USD because they believe the asset cannot possibly sustain its drive higher may be proven correct long term, but betting against ETH/USD going up at this moment has the feel of standing on a cliff technically.
Yes, ETH/USD does experience reversals lower, but Ethereum continues to display a remarkably robust characteristic of incrementally creating higher support levels. Is there anyone in the cryptocurrency market right now that can say they are willing to sell ETH/USD at this moment and comfortably aim for the 2000.00 to 1800.00 levels below? It is doubtful.
Speculators are encouraged to use limit orders when pursuing ETH/USD to protect against odd price fills. Momentum trading is one way of getting into the marketplace and potentially making sure trading positions get triggered. Traders who are conservative and put buying positions below the current market values could find it difficult to get into the action if prices do not retreat enough to trigger their long positions.
The above also highlights that ETH/USD is not only a speculative asset, but one caught within the midst of exuberance – which is a polite word perhaps for ‘bubble’. Traders are cautioned to understand just how rapidly Ethereum has gained in value and understand the rise in values is not commonplace and the ability of ETH/USD to go up in an incredibly rapid thrust is evidence the opposite can happen too. In other words there will come a day when there is likely to be a ‘correction’ in the cryptocurrency market.
However, ETH/USD for the moment remains a buy. Targeting higher prices starts with current resistance, but if the 2200.00 is attained short term, traders will certainly look for higher values. Speculators are reminded to cash in profits if they occur and before vanishing, and are encouraged to use stop losses.
Ethereum Short Term Outlook:
Current Resistance: 2194.00
Current Support: 2152.00
High Target: 2235.00
Low Target: 2107.00
