ETH/USD is trading within the upper tier of its range as speculators continue to jump onto the bullish trend and test all-time values. ETH/USD is trading within sight of 4300.00 and traders need to understand the volatility that is possible within this speculative asset. While it may feel like there is only one direction Ethereum can move, historically it has been demonstrated quite violently that reversals do occur. Before a trader exuberantly buys their entrance ticket into the ‘festival of desired profits’, they also need to understand there is a potential they can lose their money too.
On the 21st of October ETH/USD briefly spiked higher and came within a breath of record values achieved in May of this year which attained a height of nearly 4383.00. The current price of ETH/USD continues to linger slightly below the 4300.00 mark as of this writing, and traders are advised to keep their eyes on the market because values can change quickly, particularly when record territory is being tested.
The ability of ETH/USD to sustain its price within this upper price range is likely causing speculators to believe the lack of a strong reversal downwards is a bullish indicator. If ETH/USD climbs above the 4300.00 mark and begins to challenge the 4350.00 with a sustained fight, traders may begin to believe the cryptocurrency is about to break record prices.
Current support for ETH/USD can be factored near 4240.00 to 4225.00, and if these levels prove durable it could spark additional buying near these ratios based on the belief a reversal higher will be demonstrated. While Ethereum toys within sight of record values speculators may feel quite optimistic, but they are encouraged to use conservative amounts of leverage and their risk management wisely. Traders who want to go against the trend and seek limited downward price action also need to be extremely careful and use stop loss orders to protect against prices that go against them.
Buying ETH/USD continues to look like the correct speculative wager. Cautious traders may want to wait for slight pullbacks in ETH/USD and use that as an opportunity to go long. If current support proves adequate and lower marks are not challenged, Ethereum could challenge record values in the short term.
Ethereum Short Term Outlook:
Current Resistance: 4350.00
Current Support: 4230.00
High Target: 4500.00
Low Target: 4150.00
