ETH/USD has staged a reversal higher in early trading this morning, but this has not swept away nervous sentiment which technically still remains vivid.
As of this writing, ETH/USD is near the 3000.00 level, which is an important psychological mark for speculators of Ethereum. The past few weeks of trading within ETH/USD have proven difficult for optimistic bullish speculators who believed Ethereum, along with its major counterparts, had dusted off its long term bearish trend and was ready to shine.
Yesterday’s trading in ETH/USD actually took the cryptocurrency to a depth of nearly 2800.00, which is a price that had not been seen since 18th of March. This date in the middle of March however was a period in which ETH/USD had started to spark higher after hitting a low of nearly 2440.00 on the 12th of March. The bullish rally which started in the middle of March began to reverse low in the first week of April.
Trading sentiment has become fragile in the broad cryptocurrency market and ETH/USD has certainly experienced some painful selloffs in recent days. Speculators may be considering the notions of false rallies and false correlations as they try to gauge the near term and wagers. Yesterday’s fall to a one month low and sudden reversal higher may have ignited some buying, but the question is if it can endure and current resistance levels near the 3050.00 can actually be penetrated higher.
ETH/USD is within a very speculative trading range and rather intriguing correlations are beginning to take hold as to why Ethereum and the broad cryptocurrency market are struggling. Technical traders may want to take a look at the NASDAQ 100 and compare it to the results of ETH/USD the past year; they look oddly similar in some respects. However, this doesn’t mean the results can be proven. Although, it does suggests ‘riskier’ assets are under pressure as some speculative investors search for more tranquil assets.
If ETH/USD can sustain a price above the 3000.00 level this may be a positive short term indicator, but if the cryptocurrency struggles and stays beneath this juncture it could mean more selling pressure will ensue. Nervous conditions continue to roil cryptocurrencies and ETH/USD has not escaped this cautious behavioral sentiment. Selling ETH/USD in the near term when it approaches technical resistance may prove to be a worthwhile short term wager.
Ethereum Short-Term Outlook
Current Resistance: 3043.00
Current Support: 2962.00
High Target: 3116.00
Low Target: 2773.00