ETH/USD has produced a solid amount of gains in the past day. After starting yesterday near crucial support levels, Ethereum has seemingly turned the tide and created a solid movement upwards and it is around the 2915.00 ratio as of this writing. The broad cryptocurrency market has also seen a rally which may help raise the prospects for speculators who have bullish tendencies.
ETH/USD like many other major cryptocurrencies has been within a long bearish trend and there needs to be additional positive price action to declare the downward slump officially over. ETH/USD remains under the important 3000.00 level and sincerely needs to penetrate this juncture and sustain value above in order to help nervous sentiment erode.
The sudden bounce higher yesterday happened in a quick manner and intriguingly the velocity of the gains were encouraging as resistance levels were brushed aside with a rapid pace. A low of nearly 2570.00 was seen only a day ago, and this morning’s early high of approximately 2970.00 certainly was an eye opening move. However, since reaching this higher value today, ETH/USD has slipped lower and the 2900.00 mark should be watched as support.
The last time ETH/USD was able to muster a high within sight of the 3000.00 juncture was on the 17th of February. As March begins traders have experienced nearly five months of downward pressure, but ETH/USD has gained and kept value since it hit lows on the24th of February near 2300.00. Traders who have been ‘burned’ by Ethereum the past couple of months and have bought ETH/USD based on a positive trend may be suspicious of the rise in value if they have experienced sudden reversals and lost money.
If a speculator believes the current move upwards has been overdone, and perhaps is even a false rally, they may be inclined to sell ETH/USD if it struggles to challenge existing short term resistance levels. All financial assets are experiencing volatility currently due to the amount of news being generated by the war being raged in the Ukraine. Nervous conditions may continue to dominate and cause knee jerk reactions, even within the cryptocurrency world.
Traders who want to pursue the potential of higher values may want to remain cautious and look to ignite their buying positions near support levels while looking for reversals upward. Having produced fast results the past twenty-four hours is a strong warning sign, and risk management needs to be practiced wisely.
Ethereum Short Term Outlook:
Current Resistance: 2975.00
Current Support: 2879.00
High Target: 3169.00
Low Target: 2703.00
