ETH/USD was able to fight higher in the past day and touched resistance above that was last seen as a legitimate value on the 8th of January. However the push higher may not be enough to stop the bearish trend which has been consuming ETH/USD and its major counterparts. Important values will need to be penetrated higher, before the broad cryptocurrency market and Ethereum produce a believable upwards climb for many traders to reconsider the current technical signals.
While some ambitious optimists certainly lurk and believe ETH/USD remains in oversold territory, they may also be inclined to be long term viewpoints. Important support levels are still within plain sight and if the recent upwards climb runs out of power and the 3200.00 level again is challenged, more selling could be exhibited quickly. Yesterday’s run higher was not overly volatile which some bullish traders may want to say is a positive sign, but it can also be interpreted as a mere short term reversal in a market which continues to point downwards.
Cyclical movements in the cryptocurrencies are now historical facts for the speculative assets. Ethereum has been a principal partner within the mix of these cycles which have seen large record breaking heights achieved in value, and then downturns take place which test important trend lines. The question now is when ETH/USD will stop its downward trajectory. If current support levels falter, traders may believe the 2900.00 could prove an important barrier.
Only two days ago ETH/USD did actually fall to within sight of the 2900.00 level, but it did not break this mark. Traders are reminded not be to overly ambitious with their targets, particularly when they are shorting the cryptocurrencies. While downward trends are often strong, stop loss orders are worthwhile because the market can effectively produce a startling move higher which develops unexpectedly. However traders’ who believe the bearish trend will continue, should watch the 3200.00 level carefully.
If the support levels of 3190.00 to 3175.00 begin to be challenged again and prices are sustained within the range, it could be a sign further selling is going to happen. Selling ETH/USD on slight gains which approach short term resistance to ignite short positions may prove to be a cautious approach. Aggressive traders who want to sell ETH/USD now and seek levels below should use entry orders to make sure their fills are adequate.
Ethereum Short Term Outlook:
Current Resistance: 3288.00
Current Support: 3191.00
High Target: 3457.00
Low Target: 2864.00
