Yesterday’s trading in ETH/USD underscores the dynamic speculative landscape which has become a common occurrence in the cryptocurrency. Another all-time record value was achieved when ETH/USD reached nearly 4380.00. But a rather strong reversal lower developed, and in less than ten hours, the 3600.00 mark was being tested during a flash crash. Traders should decide if they can handle the adventures of digital currencies and their gyrations.
As of this writing, ETH/USD is trading near the 4000.00 mark in fast conditions. Speculative winds are blowing abruptly and other major cryptocurrencies are demonstrating rather nervous technical conditions. While new record highs in Ethereum should be a reason to cheer for traders who have been pursuing bullish momentum, the ability to get out of winning positions and cash in profits needs to have a strategy.
Speculators need to be using limit orders. Having attained a high within sight of 4400.00 on Wednesday is unbelievable, when it is taken into consideration that last year at this time ETH/USD was trading at nearly 110.00. Fortunately for ETH/USD traders, the lightning-quick moves of the cryptocurrency are not in the thousands of dollars yet like Bitcoin. Ethereum is often trading in chunks of one hundred dollars, however, when looking at technical charts on an hourly basis. Within the higher price range ETH/USD is traversing, violent reversals should be expected.
If ETH/USD can muster additional strength and break through the 4100.00, speculators may believe it has enough momentum to challenge targeted resistance and record highs above. Traders who want to be buyers around the 4000.00 level Ethereum is currently trading need to use stop-loss orders and protect themselves against the potential for swift moves. The 4000.00 may serve as an important barometer short term and signal the ability of ETH/USD to maintain its climb higher. If ETH/USD should start to decline and puncture the 3900.00 support level, traders may suspect the 3800.00 could see another test.
Speculators need to choose the amount of leverage they are using wisely with ETH/USD. They should be ready for choppy conditions near term. Technical charts continue to demonstrate a bullish trend, but support levels that were tested late yesterday and early today may cause nervous conditions to battle the emotions of traders. Buying ETH/USD on pullbacks towards support levels below may be a practical and worthwhile tactic for patient speculators.
Ethereum Short-Term Outlook:
Current Resistance: 4155.00
Current Support: 3900.00
High Target: 4400.00
Low Target: 3625.00
