ETH/USD is trading slightly above the 3800.00 mark as of this writing. In yesterday’s trading, ETH/USD stumbled to nearly the 3715.00 level, before it sparked a reversal higher. However, ETH/USD remains within the lower realms of its one-month range and is still below mid-December trading realms. As the New Year begins its markets trading, speculators will have a difficult technical question to answer regarding their perceptions.
The broad cryptocurrency market remains under pressure when looking at the past week of results. Cryptocurrency is not affected by closures of markets like many financial assets. Speculative wagers continued, and weekend trading has certainly affected Ethereum along with its major counterparts. ETH/USD is in the midst of a rather intriguing value and, if support is challenged below, it could spark nervous sentiment.
The 3800.00 may be thought of as a fake psychological barrier by some technical traders, but if ETH/USD once again falls below this depth it could be a bearish signal. From the 29th of December until yesterday, ETH/USD continued to trade below the 3800.00 in a sustained manner. If the current price shows weakness again, traders may perceive yesterday’s late reversal higher as a temporary move upwards, while suspecting additional selling may be demonstrated.
The level of 3775.00 should be watched by traders. Some aggressive sellers may decide this ratio is take profit vicinity if they are shorting ETH/USD, but to do that they would need to be using a conservative amount of leverage to make sure that trading moves in the wrong direction short term does not knock them out of the game. Resistance levels above around the 3840.00 to 3850.00 levels could prove to be difficult for ETH/USD to penetrate. And until ETH/USD moves above the 3900.00 level and maintains value above this juncture, the cryptocurrency could be perceived as remaining within a bearish mode.
Speculators should be careful with ETH/USD as the potential for additional volume creeps into the market, if institutional traders do decide to get involved. Stop loss and take profit ratios should be considered wisely, because volatility may grow near term. The broad cryptocurrency market continues to display signs of selling pressure and ETH/USD has not escaped this shadow. Traders should not be overly ambitious and if their wagers are profitable, cashing in winning positions would likely be a good decision if they are produced.
Ethereum Short-Term Outlook
Current Resistance: 3847.00
Current Support: 3774.00
High Target: 3910.00
Low Target: 3694.00
