ETH/USD is trading around the 1200.00 mark as of this writing. While Ethereum is certainly still able to be viewed close to its lowest depths, reversals higher in the short term have been abundant and made for speculative and choppy conditions. Yesterday’s early low in ETH/USD was approximately 1011.00, which definitely caught the attention of the broad cryptocurrency market.
The long term bearish trend in ETH/USD is loud and clear. Speculators with a taste for adventure could wager on upside when perceived support levels are flirted with and try to capture rebounds upwards, but getting out of buying positions before they run into headwinds remains difficult to time. ETH/USD did reach a high of nearly 1254.00 early this morning, which beat all of yesterday’s highs, but Ethereum was not able to puncture – or even really get close – to the 1280.00 mark which could stir additional speculative hearts.
The move higher across many of the major cryptocurrencies in the past half day may calm the digital asset market temporarily, but all it would take is another dose of selling to reignite the thought that new lows are going to be demonstrated. Short-term support near the 1153.00 should be monitored, sustained trading above this level could spark confidence, but if it is penetrated lower selling shadows could reemerge quickly. The question traders need to confront is just how long they can maintain a position within the choppy conditions which are prevailing.
It is likely that short term trading will produce rather whipsaw effects for speculators. After the thunderous move downwards which was delivered the past handful of days, a break in the tidal wave lower may be logical. However, if ETH/USD continues to stay within sight of lows hit yesterday and is not able to enjoy a sincerely strong move up and above the 1300.00 level, traders will likely remain suspicious that selling pressure will once again be demonstrated. The question is when?
Short term traders with superb risk taking tactics and the ability to maneuver their leverage conservatively, use entry points, stop and take profit orders wisely could participate in ETH/USD with quick hitting trades trying to take advantage of short term gyrations. The upside may have brief moments of wagering ability. But traders’ who are still skeptical and believe more bearish momentum will be generated, may simply want to wait for resistance to emerge technically and then short Ethereum. ETH/USD will remain extremely dangerous to trade near term and traders need to be cautious.
Ethereum Short-Term Outlook
Current Resistance: 1255.00
Current Support: 1155.00
High Target: 1386.00
Low Target: 970.00
