ETH/USD is trading within sight of the 1600.00 mark as of this writing; this sentence is closely aligned to last month’s start per its value. However the mood of speculators within Ethereum is likely different than it was when August was starting, compared to the sentiment in the cryptocurrency world which exists now. Experienced traders may say nothing is surprising in the digital asset sphere and they are largely correct, but technically ETH/USD is rather intriguing as September gets ready to begin and more drama is a certainty.
Having traded near a low around 1420.00 yesterday, a mark that had last been seen on the 27th of July, ETH/USD speculators likely became more anxious. From a percentage standpoint the price change in ETH/USD when compared to BTC/USD has produced better results for Ethereum. On the 13th of July ETH/USD was trading within sight of 1000.00, and on the 14th of August the value of Ethereum was nearly 2028.00. A doubling of value is a rather excellent result if it can be accomplished in one month’s time.
The Past Two Weeks have Produced Selling in ETH/USD and a loss of 25% in Value
The losses generated by ETH/USD the past couple of week however, cannot be simply swept away and disregarded. No, ETH/USD does not move in leaps and bounds like Bitcoin with 1000.00 USD moves occurring in the blink of an eye. Yet, the movement of ETH/USD is fast, and when too much leverage is used the results can be damaging if proper risk management is not practiced.
- A move above 1600.00 if it can be sustained near term may spark speculative buying for ETH/USD, but the 1800.00 level remains an important clue for Ethereum.
- ETH/USD remains speculative and its recent downturn could be reignited if resistance levels stay strong and behavioral sentiment sours further.
Speculators may View ETH/USD as less Risky compared to Bitcoin but that may be wrong
Traders may perceive that ETH/USD produces calmer results compared to Bitcoin, but that depends on the way the cryptocurrency is wagered. Even though the value moves at a slower pace in ETH/USD, it still produces extreme price action when risk management is not engaged. Entry price orders are needed to make sure fills meet expectations. The move lower in ETH/USD the past two weeks opens the door for the potential more negative trajectory can be demonstrated.
ETH/USD Outlook for September:
Speculative price range for ETH/USD is 999.00 to 2119.00.
The potential exist that yesterday’s low which tested values not seen since the last week of July, and the subsequent move higher might attract buyers. But if traders are overly confident, they might find that a trap of sorts is being set for buyers, and that stronger selling could be demonstrated which retests lows in a quick fashion. If the 1500.00 ratio were to be flirted and a move lower builds power, a drop below 1400.00 would not be a surprise for ETH/USD. The broad cryptocurrency market remains under nervous shadows and should be watched. ETH/USD does not move in an isolated manner.
Any move below the 1400.00 mark in ETH/USD would be a reason for concern and could ignite faster selling of the cryptocurrency. Technically the 1350.00 ratio looks to be important support and if this juncture were to be proven vulnerable, alarm bells could sound which would cause nervousness among Ethereum backers. A move towards the 1200.00 realm, particularly if Bitcoin remains under pressure could become a target for speculative sellers.
Having traded above the 2000.00 level in August was an accomplishment for ETH/USD. However, the inability to hold this value could prove to be a negative road sign, particularly if upwards momentum is difficult to attain in September. However, if the 1700.00 to 1800.00 marks are flirted with again and show an ability to hold onto value, speculators will certainly believe the 1900.00 to 2000.00 mark will be seen. A solid penetration of August highs could be considered a bullish indicator for ETH/USD, but before a vast parade of traders flock into cryptos again, they will likely want to see sustained price action that is durable for a handful of weeks.
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