As of this writing, ETH/USD is bordering the 2500.00 juncture and this might prove to be an important inflection point for short-term traders. A high of nearly 2700.00 was achieved on the 1st of August, but since then headwinds have pushed ETH/USD lower. In late trading yesterday, a low of approximately 2450.00 was demonstrated. The broad cryptocurrency market has also turned choppy.
Technically, ETH/USD is in a precarious position for speculators and the game can be defined as ‘who do you trust’ by market participants. The past few months have plenty of technical reminders regarding the fate of short-term highs suddenly running into powerful reversals lower. After putting in a rather solid week-and-a-half of gains, traders cannot be faulted for wondering if the short-term bullish streak has not eroded and more tests of lows will follow.
If the current juncture of 2500.00 proves it cannot sustain values and ETH/USD begins to test levels near the 2475.00 to 2450.00 marks and these still appear vulnerable, then speculators may rightfully suspect that stronger selling is about to unfold. The notion that recent buying in the broad cryptocurrency market including ETH/USD was a false breakout cannot be exaggerated, particularly if support levels continue to see additional tests.
Velocity needs to be watched in ETH/USD carefully. If ETH/USD breaks support today and begins to trade below the 2450.00 juncture, it could mean that a quick test of the 2400.00 could be exhibited. Having created rather strong moves higher the past week-and-a-half, the reversals lower in what has clearly been a significant bearish marketplace the past few months will increase negative sentiment. If support levels prove inadequate and ETH/USD begin to traverse in a value range that is perceived as its lower band, speculators may believe that Ethereum is about to once again flirt with dangerous lows.
The coming two days of trading will be important regarding behavioral sentiment. Bullish traders may grow nervous if they do not see sustained prices above the 2500.00 levels. While some traders may view the current price levels of ETH/USD as cheap around the 2450.00 mark, sellers who have bearish sentiment may view these values as a signal additional weakness is about to be expressed. ETH/USD has enjoyed a substantial bullish run since the 20th of July, but if support around the current perceived levels begins to be penetrated lower, selling the cryptocurrency could be a legitimate wager.
Ethereum Short-Term Outlook:
Current Resistance: 2544.00
Current Support: 2475.00
High Target: 2634.00
Low Target: 2397.00
