ETH/USD did not sell off politely this weekend, it dove through support levels quickly and Ethereum is challenging all traders.
ETH/USD is trading near the 1340.00 price as of this morning. Hopefully, traders with buying positions were using stop loss tactics this weekend, and did not see their entire account get wiped out by the volatility which has been demonstrated. ETH/USD has sunk an astounding amount. When the weekend began, ETH/USD was trading slightly below the 1700.00 mark. Price velocity has been lightning fast and speculators should be braced for additional adventures.
To put the current price of Ethereum into perspective, the price of ETH/USD during a run upwards in one of its first exuberant higher rocket ship like launches hit 1360.00 in January of 2018. By December of 2018 ETH/USD was touching 70.00. This is not written to suggest ETH/USD is going to fall to 72.00 in the coming months, but it does highlight that nearly 4 and half years ago the price of Ethereum matched its price currently. Buyer beware is a mantra traders may want to repeat.
In the second week of November 2021 ETH/USD was trading at approximately 4850.00. The bearish trend in ETH/USD has been wicked, and traders who are intent on looking for upside momentum to suddenly flourish and be sustained will likely have to be patient. The 1300.00 juncture was flirted with in the early hours of this morning.
If ETH/USD were to break below the 1310.00 level in the short term, that could spark another round of selling today. The coming week of trading is likely going to produce price fireworks as speculators in Ethereum react to extreme conditions caused by the fragile behavioral sentiment, which is abundant in the broad cryptocurrency markets. As a leader within the market, ETH/USD will be looked to as a road sign also for clues about directions.
If the 1300.00 level is broken and trading cannot be sustained above this juncture, it could create a test of an almost unimaginable (a few weeks ago) 1225.00 value. Traders who want to continue to look for downside in ETH/USD cannot be blamed, but they should be extraordinarily cautious in the near term. Speculators looking for upside, almost needless to say, should keep their ambitions realistic. While it may be tempting to aim for 1400.00, it may also prove to be costly if buyers do not emerge.
ETH/USD has entered the landscape of vast volatility and traders should prepare for more instability ahead. The trend has been lower and it may continue to display power, but wagering on this momentum needs to be done with great care.
Ethereum Short-Term Outlook
Current Resistance: 1381.00
Current Support: 1315.00
High Target: 1445.00
Low Target: 1228.00