ETH/USD is trading near the 1180.00 ratio as of this writing. Ethereum has demonstrated a rather consolidated price range in recent trading, but its failure to sustain momentum higher, while still firmly within a long-term bearish mode, has not built confidence. A slow erosion of value the past two days may be adding to nervous sentiment for speculators of ETH/USD.
On the 25th and 26th of June ETH/USD was able to produce a rather steady amount of trading above the 1200.00 mark. Yes, reversals lower after gains have been made are a common dynamic of market action, but the inability of ETH/USD to sustain its higher prices within the midst of poor behavioral sentiment among traders is not a positive sign. Certainly a ‘whale’ could emerge who will suddenly start buying ETH/USD and lead a strong charge higher, but until evidence springs forward to show a buying surge is about to ignite, bullish traders may want to stay cautious.
ETH/USD as of this writing is very close to important technical support. If the 1170.00 value falters and Ethereum starts trading below the 1165.00 ratio, speculators may get worried that another round of selling is going to test boundaries below. If the 1150.00 level were to be challenged, ETH/USD could suddenly find itself testing price junctures seen on the 24th of June when the cryptocurrency touched the 1130.00 value.
Optimistic bulls will argue that the current price of ETH/USD is far better than the lows seen a little more than one week ago when the 900.00 level was broken on the 18th of June. However, sellers of ETH/USD who want to speculate on nervous conditions continuing to boil cannot be blamed. Traders are urged to remain conservative and use limited amounts of leverage on their wagers. If ETH/USD continues to consolidate and fails to show sincere price velocity upwards, another wave of selling could be produced sooner rather than later.
If ETH/USD fails to challenge the 1195.00 mark above and if the 1200.00 does not see a sustained amount of trading above, Ethereum may have another round of downward momentum to display. The trend lower in ETH/USD has not vanished and support levels remain within sight. The buying which has been demonstrated the past week of trading has likely not convinced sellers of ETH/USD that it is time to stop shorting Ethereum. If the 1130.00 support level falters short term, volatility in Ethereum could erupt into lower moves.
Ethereum Short-Term Outlook
Current Resistance: 1207.00
Current Support: 1150.00
High Target: 1261.00
Low Target: 1042.00
