ETH / USD breaks the bearish threshold of 2400.00 as of this writing, and Ethereum’s failure to break above resistance levels can also be seen as a negative indicator. The ratio of 2400.00 below is important, and if it turns out to be vulnerable traders may think another test of a lower low is going to take place. The 13the June, ETH / USD traded near the 2300.00 level but was able to withstand selling pressure which produced a near-term high of near 2645.00 on the 15the.
Speculators who continue to believe ETH / USD should produce another bullish cycle may become cautious. Ethereum has not been able to make a substantial upward push. The 7e June, ETH / USD was trading above the 2,800.00 mark, but has shown a gradual decline in resistance levels since then and established a new short-term ratio of 2,636.00 in as a high water mark.
Over the past two months, ETH / USD has shown signs of outperforming its major counterpart, Bitcoin. However, the last few weeks have started to see Ethereum’s stronger correlation with BTC / USD erode. Technically, price dynamics could change with a sharp spike, but from a behavioral sentiment perspective, the value of ETH / USD is unlikely to generate a bullish signal for short-term traders. Speculative bulls can watch the current price action and proclaim that this is simply a healthy consolidation of value for ETH / USD and a strong reversal to the upside will follow.
However, the problem for ETH / USD is the obvious fact that it has struggled to break through resistance and continues to test support levels. If the 2,400.00 ratio is digged lower and values are held below, additional selling pressure could certainly develop. Short-term upward moves appear to be facing headwinds for ETH / USD.
Traders should also keep in mind that ETH / USD traded near a low of 2240.00 as recently as the 12th.e of June. Bullish speculators may believe that these low points are a buying opportunity. But skeptics may believe that support levels might not be able to withstand negative selling pressure if Ethereum were to test lower depths again, and a flood gate could open, which would allow l ‘ETH / USD to lose more value. Bearish speculators may want to consider additional short positions and bet that there are more downsides to explore. Traders should use stop orders and watch ETH / USD carefully.
Short-term outlook for Ethereum:
Current Resistance: 2471.00
Current Support: 2385.00
High Target: 2,563.00
Low target: 2290.00