ETH/USD is above the 3000.00 threshold and appears to be conducting its trading not only above this juncture, but has proven the capability to climb higher and challenge important resistance. Yesterday’s high of nearly 3235.00 was a strong demonstration of the power ETH/USD can create when it is within a bullish trend. However after reaching yesterday’s high, ETH/USD began to reverse lower.
As of this writing, ETH/USD is trading slightly above the 3100.00 level, which is good gain of value considering Ethereum was near the 2175.00 ratio on the 24th of January. A move of one thousand USD higher in two weeks should clearly highlight for all speculators the capability Ethereum has to create volatility, even though it is now considered one of the more ‘mature’ cryptocurrencies. Traders should remember to use proper risk taking tactics and adequate stop loss and take profit strategies to wager on ETH/USD.
Yesterday’s high water prices did challenge momentarily levels generated from the 18th until the 20th of January before ETH/USD was hit by a massive wave of volatility which eventually led to the steep decline in prices which happened until the 24th. The 3100.00 mark ETH/USD is now trading could prove to be significant as a psychological juncture short term. If it is able to be sustained this could signal to some technical traders, the potential for buying opportunities based on a suspicion additional bullish action will happen.
If the 3175.00 ratio starts to be challenged above this could cause buyers to step in based on the perception the 3200.00 juncture is within reach and potentially toppled. If yesterday’s higher values are seen again today or tomorrow it could certainly be an indication the bullish trend can be maintained.
However, short sellers may still be looking at the mid-term range of ETH/USD, and believe yesterday’s failed attempt to puncture key January pricing just before the steep spikes were seen in the third week of the month is a sign reversals lower can still occur. If ETH/USD falls below the 3100.00 level and challenges the 3050.00 ratio this would be a potentially negative sign and traders may believe the 3000.00 mark can be a target.
Traders should be ready for another day of violent trading within ETH/USD and use their leverage very cautiously. While upside movement appears tempting, ETH/USD still resides in a troubling price range.
Ethereum Short-Term Outlook
Current Resistance: 3187.00
Current Support: 3033.00
High Target: 3287.00
Low Target: 2932.00
