ETH/USD is trading near important short-term resistance as it lurks slightly below the 2800.00 mark. Incrementally, ETH/USD has proven to be rather strong the past week. On the 30th of May, ETH/USD was trading near 2180.00, but it did manage to find support at this juncture and has produced an almost steady climb. In the past week, support seems to have been established between 2550.00 and 2825.00, while disregarding a few outliers.
While ETH/USD has done well to hold onto its value and produce some gains, the move higher has not been significant when compared to the wild volatility which accompanied the cryptocurrency the past month. Just two days ago, ETH/USD tested lows near the 2500.00 level, but held its ground. Technical traders who inspect a one-month chart can clearly see Ethereum remains within a lower value range. Yes, it is trading near the top of its price action, but it seems to still be having trouble breaking through highs seen on the 21st of May around 2945.00.
Traders who are have a hard time trying to decide on price direction of ETH/USD after the tumultuous past month cannot be blamed. Technical perspective should focus on the 2825.00 to 2850.00 junctures above as resistance. If these values are not tested in the short term and the 2800.00 mark remains adequate, traders may start to be tempted to actually sell ETH/USD and look for another downturn.
ETH/USD is within a curious price level at the moment and offers traders the opportunity to test their beliefs. Speculators who remain committed to a bullish perspective are advised to wait for momentum to produce a slightly higher valuation. If the 2850.00 mark is toppled, ETH/USD could be on its way to challenge the 2900.00 level without much effort.
However, traders who suspect that ETH/USD has not proven that it has enough firepower to gain in a strong manner while it sits slightly below 2800.00, may decide to be sellers and look for support levels to be tested again. From a risk/reward standpoint, in the short term, it appears technically that ETH/USD may have more downside opportunity than upside. Until ETH/USD breaks through what has proven to be rather strong resistance the past two weeks, traders seeking moves higher are advised to remain cautious.
Ethereum Short-Term Outlook:
Current Resistance: 2848.00
Current Support: 2737.00
High Target: 2929.00
Low Target: 2509.00
