Trading this morning in ETH/USD has been choppy as the cryptocurrency bounces near important psychological barriers around the 3800.00 juncture. Lows from this weekend are in sight and mid-term support ratios are certainly nearby for Ethereum. The broad cryptocurrency marketplace has largely been in a tailspin the past few weeks. Reversals higher have certainly been seen, but the trend has been lower.
Speculators who are staunch advocates of cryptocurrency may believe the general selloff in the digital asset realm presents and excellent buying opportunity long-term. However, short-term traders who may even be bullish about the future of Ethereum and its major counterparts, may not care about anything more than the present outlook. ETH/USD is approaching important support levels that could ignite additional nervous selling if they prove vulnerable.
If the 3800.00 level sees a sustained attack and prices are maintained under its realm in the near term, the 3760.00 juncture should be monitored. Experienced traders do not have to be warned repeatedly about the potential for volatility to hit ETH/USD at any time they know it, but is should always be a mantra that day traders repeat to themselves. Stop loss positions are vital within cryptocurrency trading; ETH/USD has the ability to move fast. If support near the 3760.00 level were to falter, it is within the sphere of possibility that Ethereum could challenge the 3700.00 next.
Current resistance levels should be monitored too, particularly if a sudden reversal in momentum occurs. Many bullish speculators still exists within Ethereum and they may simply be waiting for prices to rise above the 3850.00 range in order to begin looking for additional upside. However, until ETH/USD is able to sustain prices above the 3900.00 level for a protracted amount of time, Ethereum remains suspect regarding its bullish potential.
ETH/USD remains extremely speculative and traders who are looking for downside price action need to understand the risks they are taking. Traders should not be overly ambitious when they are pursuing bearish trajectories within Ethereum, and they should have their take profit orders working to cash out profits which are produced. Selling ETH/USD remains a pure wager, but speculators who believe more downside capability in the short term will be displayed, could continue shorting the cryptocurrency on slight moves higher while looking for reversals lower.
Ethereum Short-Term Outlook
Current Resistance: 3865.00
Current Support: 3763.00
High Target: 3956.00
Low Target: 3695.00
