ETH/USD has seen a rather violent spike downwards in early trading this morning, but this follows strong higher weekend price action.
After traversing above 1900.00 early this weekend, ETH/USD has produced a decline this morning. The cycle of boom, bust, and boom are familiar to cryptocurrency speculators, and as price action flirts within sight of record highs, ETH/USD traders cannot be faulted for continuing to believe that pursuing the trend upwards remains the calling card for positive results.
While this morning’s trading is a concern and important support levels are within sight when looking at a five-day chart, speculators may be considering buying ETH/USD within its current values based on the notion that a reversal upwards will soon develop. There are no guarantees, however, and experienced traders know this and use risk management techniques to guard against moves which do not match short-term expectations.
The support junctures of 1793.00 to 1780.00 should be watched carefully within ETH/USD; if these levels crumble, it could signal that another test of lower values may be about to flourish. If support near the 1745.00 mark begins to appear vulnerable, it is not inconceivable that a journey lower towards values near 1630.00, which were last seen on the 7th of March, could be produced by ETH/USD.
Ethereum remains a volatile speculative asset. While the upside remains tantalizing, traders should consider the potential for violent short-term losses. However, speculators who believe that cryptocurrencies, including ETH/USD, remain within a strong bullish market and that price action like this morning is merely a natural cycle down, may be looking at current values as an opportunity. Being a buyer of ETH/USD within the prices of 1790.00 to 1805.00 with limit orders may be a tactic that cautious traders want to contemplate. Moves within ETH/USD remain fast and speculators are urged to use limit orders when entering their positions.
This weekend’s high in ETH/USD is a reminder that the cryptocurrency remains rather close to all-time highs seen in February. If ETH/USD is able to break its rather short-term consolidation within the 1800.00 to 1880.00 value range and sustain prices above, speculators may be proven correct if they are targeting the 1900.00 to 2000.00 marks. As always, ETH/USD remains a dynamic speculative asset and its results may be lightning fast. This morning’s spike downwards, while a concern, also may produce an incentive to look for a reversal higher near term.
Ethereum Short-Term Outlook:
Current Resistance: 1840.00
Current Support: 1783.00
High Target: 1897.00
Low Target: 1745.00