ETH/USD is hovering above the 3460.00 mark as of this writing. The price of the cryptocurrency has seen a rather stiff wave of consolidation build the past five days of trading as a range of nearly 3350.00 to 3635.00 has been established. However, in the past couple of days a noticeable decline in resistance levels has become apparent. ETH/USD dropped through the 3500.00 mark early today with a swift move.
The broad cryptocurrency market appears to be fighting for direction, but the perspective that gains have not been produced in a widespread manner may be leading to nervous sentiment creeping into speculators minds. Support near the 3450.00 for ETH/USD which is extremely close should be monitored, and if this level is broken lower and trading persists with the ratios of 3450.00 to 3400.00 being tested this would be a troubling bearish signal short term.
Yesterday’s low in ETH/USD was nearly 4404.00, yes a reversal higher was exhibited and a high of nearly 3550.00 was attained shortly after. However, the bullish momentum was not able to be sustained and in fact another push lower started to develop with choppy conditions prevailing. On the 10th of October, it should be remembered that a challenge to the 3350.00 mark below was established.
If downside momentum continues to be displayed and current resistance levels are not genuinely tested near the 3490.00 to 3500.00, short-term speculators could not be blamed for believing additional selling is going to occur. Volatility is always possible within ETH/USD and traders need to be prepared for it. While the word consolidation has been used to describe the current range of Ethereum it should be acknowledged that moves of a couple of hundred dollars in a moment’s notice are not uncommon.
If ETH/USD continues to straddle its current price range near the 3460.00 level, traders may want to direct their attention to the potential of more bearish traction being a possibility. Speculators may want to consider selling ETH/USD on slight upticks if the cryptocurrency doesn’t seem ready to create price velocity upwards. Shorting Ethereum and looking for support levels to prove vulnerable near term may be the correct wager.
Ethereum Short-Term Outlook
Current Resistance: 3497.00
Current Support: 3430.00
High Target: 3535.00
Low Target: 3360.00
