ETH/USD has taken a negative turn the past two days of trading, and positive sentiment which had been building in the cryptocurrency markets will now be tested.
ETH/USD has taken a quick turn lower the past two days of trading after challenging important mid-term resistance levels above. On the 3rd, 4th and 5th of April ETH/USD flirted with the 3600.00 ratio which threatened to touch early January marks and could have ignited another bullish leg upward. However, the resistance level has for the moment, proven durable and ETH/USD has seen its price erode swiftly.
The current value of ETH/USD is near 2315.00, close enough to key support levels to actually cause nervousness among speculators, who may have been hurt by the long term bearish trend experienced the past six months. After flashing positive upwards movement since the middle of March, Ethereum has embarked on a sudden downturn and now traders must decide if this is a temporary glitch or a sign of more bad things to come. Speculative endurance is certain to be tested.
If ETH/USD is not able to hold above the 3200.00 mark in the short term, this would be a negative signal. Optimistic traders may be tempted to believe the selloff being demonstrated will prove to be a worthwhile buying opportunity because a reversal higher can be produced, but they should use careful risk taking tactics just in case selling continues to build momentum in the short term.
The broad cryptocurrency market has taken a negative turn also the past couple of days. ETH/USD is a leading digital asset and should be monitored carefully because it certainly serves as an important barometer of behavioral sentiment. If current support levels prove they can consolidate, ETH/USD may be able to exhibit another move higher near term. Traders need to use a cautious amount of leverage under the present conditions. Support near the 3194.00 level should be watched, if this crumbles things could turn worse.
Speculators who still want to pursue upwards trajectories cannot be blamed. Technically if the 3200.00 ratio is able to remain strong, the current trading range of ETH/USD could prove to be a buying window and a place to seek positive outcomes. The recent trend of ETH/USD has been solid and shown a sustained amount of gains, the sudden downturn could prove to be a momentary reversal lower driven by weak nervous sentiment. Speculative buyers need to be careful and use stop losses, but they cannot be blamed on wagering on higher price targets.
Ethereum Short-Term Outlook
Current Resistance: 3271.00
Current Support: 3194.00
High Target: 3383.00
Low Target: 3077.00