Ethereum is ready to begin the month of December with an important test of its speculative value awaiting traders. ETH/USD began November in the midst of a strong bullish surge which saw all-time highs created on the 10th of November near the 4890.00 mark. The trend of ETH/USD in the month of November intriguingly, has mirrored in many respects the results of BTC/USD technically.
Since touching the apex levels of its value in the second week of November, ETH/USD has incrementally moved lower. As of this writing, Ethereum is near the 4340.00 ratio after actually achieving a higher reversal which was ignited after hitting a low of 3980.00 on the 28th of November, which came within sight of its lower value seen only couple of days before when a price of nearly 3900.00 was demonstrated momentarily.
These lows tested a level also seen on the 18th of November. Importantly, the last time ETH/USD challenged the 3900.00 level was in the last week of October, when a buying surge began to intensify and started to challenge all-time record highs seen in May of this year. When the new record high for Ethereum was reached on the 10th of November, speculators could not be blamed for believing the 5000.00 mark was within grasp, but this was not achieved.
The broad cryptocurrency market remains within a speculative spotlight and the ability of ETH/USD to display record values recently is certainly within the minds of optimistic traders. If current price levels are able to be maintained and support is exhibited, speculators may believe the current downward trend in ETH/USD will prove short-lived and a perhaps only a period in which profit taking occurred. Optimistic traders may also view the current price levels as a potential ground where consolidation is going to be delivered, and technically demonstrate another wave of upwards momentum.
Having been able to withstand selloffs the past couple of weeks after mounting record highs, and not sustain prices below the 4000.00 level, some traders may believe the next volatile wave within ETH/USD could be another upside attack. One intriguing aspect of the trading the past couple of weeks while selling has been dominant is the lack of extreme price velocity. The last week of September until the record highs recorded on the 10th of November went from approximately 2750.00 to 4880.00 within less than a month and a half. The lack of fast conditions may prove to be a warning sign that traders should prepare for faster markets in December. In other words, traders should not become accustomed to tranquil conditions.
ETH/USD Outlook for December
Speculative price range for ETH/USD is 3400.00 to 5200.00.
Support near the 4200.00 to 4100.00 price levels should be watched closely. If these levels begin to falter and the 4000.00 value is again challenged, traders could become nervous. If the price of Ethereum is sustained below this 4000.00 juncture it could set off momentary selling sparks and cause long-term players within ETH/USD to cash out holdings that are still profitable. Short-term speculators also need to monitor the speed of any rapid declines if they develop. A drop below the 3900.00 would likely be negative and could mean additional support levels will be proven vulnerable.
Optimistic ETH/USD traders however, may look at current technical levels and believe now is a buying opportunity. If the current price action of ETH/USD is maintained, the value of the cryptocurrency does in fact look rather enticingly close to all-time highs. If nearby resistance of 4400.00 and 4500.00 is seen, this could spark speculative buying, which believes another wave of higher values is going to be demonstrated. Traders who are looking at upside potential may believe December will produce additional record values for Ethereum.
