The past week of trading within ETH/USD has seen volatile price action. However, after achieving all-time highs on the 15th of April and experiencing a polite amount of profit-taking, ETH/USD has been able to produce a steady and calm climb higher. As of this writing, ETH/USD is traversing near short-term highs, and what is likely to get the attention of traders is that its current price action seems to be sedate.
This doesn’t mean that ETH/USD won’t suddenly turn into a speculative beast; this is a cryptocurrency, certainly. However, traders who glance at technical charts may believe that the value range being displayed within one-day and five-day ratios may offer the hope that a rather durable line of support may prove worthwhile and tempt more buying positions of Ethereum.
After all the bluster and media coverage of cryptocurrencies the past month, the broad market, including ETH/USD, has exhibited staying power in the past week. Experienced traders know that speculating is not a magic kingdom where highs are created every day; reversals are part of the natural order and financial assets have cyclical movement. The ability of ETH/USD to sustain its higher price range could entice traders who may interpret the past week of trading as a good indicator that the bullish sentiment within the market may continue to produce strength.
ETH/USD is trading within sight of the 2500.00 juncture. Resistance may prove to put up a fight slightly below this value, but if and when the 2500.00 mark is punctured higher, it could set off another round of frenzied buying. Traders should be prepared for the tranquil seas which have been enjoyed the past two days within ETH/USD to become swift again if the digital currency begins to flirt with record highs in earnest.
Traders who want to be buyers at these heights cannot be faulted. ETH/USD has shown a durable amount of value, and the notion that Ethereum did not suffer a more severe sell-off after achieving record highs last week could spark another flurry of bullish activity. Buying ETH/USD remains an aggressive speculative choice for traders, but one which may produce the best results. Traders need to use their risk management as they target higher values with solid stop losses that protect against the potential for reversals lower.
Ethereum Short-Term Outlook:
Current Resistance: 2495.00
Current Support: 2373.00
High Target: 2575.00
Low Target: 2278.00
