Having hit new mid-term lows on the 22nd and 26th of June, ETH/USD has shown some capability of lifting itself off of support and producing gains. The broad cryptocurrency market has shown some stability the past few days, but this will not wash away the nervous sentiment which has been generated as over exuberant speculative buying ran into a hard wall and watched values get sliced apart over the past month and a half.
The month of June provided difficult and durable resistance junctures between the 2700.00 and 2800.00 levels, penetrating these price points proved difficult and it is rather easy to say there was no substantial sustained trading over these marks. Yes, the first week of June saw values accumulate and exceed these junctures, but after the 7th of June when an approximate high of 2845.00 was touched ETH/USD has incrementally failed to produce a solid leg up. The lack of a persistent attack on resistance levels and their actual decreasing values has not helped bullish sentiment.
Although there has been a rather nice amount of gains the past few days as July starts to knock on the door, ETH/USD will have to climb above the 2300.00 level most likely to convince traders that another attempt at higher values is underway. Speculative bulls who want to buy ETH/USD can certainly not be blamed, but it might be a good idea for them to remain cautious and see resistance levels brushed aside and a good amount of velocity enter the marketplace. Until then the uncomfortable notion that important support ratios are nearby and continue to look vulnerable may prove to create actual selling opportunities for bearish traders when and if they perceive Ethereum is running out of upwards power.
Yes, the broad cryptocurrency has seen some pleasant gains in the past week, but these have been achieved off of lows. Speculators need to ask themselves who is buying ETH/USD at the current price levels and what are the motives. ETH/USD can create surges higher in a moment’s notice and prove all price predictions a joke, but the past month of trading has shown that resistance junctures around the 2600.00 level had some teeth. If this value is punctured higher, then perhaps bullish speculators can start to proclaim the dark mid-term range is about to rebound, but the 2700.00 and 2800.00 will need to produce a serious amount of sustained value for many skeptics to step into buying positions again.
The 2000.000 juncture below is a key psychological barometer. If trading of ETH/USD continues to knock on this door and actually opens it wide and creates faster results downward, this would indicate that another bearish leg could be presented. The low water marks touched on the 22nd and 26th of June tested values not seen since early March. And if these March values falter then February prices below could certainly be targeted.
ETH/USD Outlook for July:
Speculative price range for ETH/USD is 1550.00 to 2900.00.
ETH/USD remains within a rather delicate trading range and if sentiment continues to prove fragile without major moves upward, this could propel bearish activity. The junctures of 2100.00 to 2000.00 remain vital. If these values prove vulnerable or see a steady amount of trading within their midst, sellers could logically begin to believe lower prices are attainable. The 1900.00 to 1800.00 marks were certainly tested in June. Although prolonged trading didn’t happen within these levels, if the broad cryptocurrency market turns sour again, lower prices could emerge.
Resistance nearby currently looks to be the 2300.00 mark, any trading above this should create a bit of skepticism even among bullish traders. Yes, traders looking to be buyers when lows are tested are welcome to speculate that reversals will occur, but they should use quick hitting trades that use take profits until key resistance levels begin to be penetrated. Until ETH/USD is able to move above the 2600.00 level and demonstrate fast trading conditions with a couple of surges higher, traders may want to refrains from hanging onto buying positions for too long. If the 2700.00 and 2800.00 marks begin to get tested again, this could signal a change in sentiment may actually be taking place in a positive manner for ETH/USD.
