ETH/USD is trading above the 2900.00 level as of this writing. Over the weekend, Ethereum enjoyed a serious move upwards which likely rewarded traders who had bought at perceived technical lows in the days prior and held onto their positions. A high of nearly 3190.00 was approached twice yesterday, but after the second move towards the top level seen, ETH/USD has reversed and delivered its typical share of volatility which speculators have come to expect.
The ability of ETH/USD to deliver a spike higher and maintain its pace after challenging lows near 2550.00 on the 5th of August highlights the vast moves Ethereum is capable of producing. The question now is if the cryptocurrency can maintain its bullish stance which it has produced since the 20th of July, when it hit a low of nearly 1725.00, or if the ignition switch is suddenly going to turn off.
Speculators have a difficult decision to make technically. ETH/USD is traversing important short-term support levels and the 2900.00 mark could prove to be important. If it does not hold and the 2875.00 to 2825.00 junctures start to be flirted with, this could set off a wave of selling by traders who have participated in the move higher and decide to cash out of winning positions they still may be holding onto.
The 2700.00 resistance level had been the lynchpin many traders were looking at in the past couple of months. When this juncture was penetrated on the 5th of July suddenly on a reversal upwards, and ETH/USD shot past 2800.00, a lot of positive buying velocity certainly developed. The broad cryptocurrency market has taken on a more bullish tone certainly, but as always, traders must keep their eyes on the market for sudden downturns. Traders should make sure they are not over-leveraged while placing their wagers.
The recent price action in ETH/USD may create a churning atmosphere which could prove tough and costly for skittish speculators. The current price level may be a place where aggressive traders decide to take long positions and aim for the 3000.00 juncture once again with the belief that, if toppled, ETH/USD could be on its way to new mid-term highs which have not been seriously tested since the third week of May.
The fast movement within Ethereum the past couple of days should serve as a reminder that cautious stop losses are important. If a trader is lucky enough to find a trend higher and they want to raise their stop losses via ‘trailing stop losses’, this could prove a dynamic tactic, but first the market needs to continue to rise.
Ethereum Short-Term Outlook:
Current Resistance: 2975.00
Current Support: 2895.00
High Target: 3150.00
Low Target: 2792.00
