ETH/USD staged an upward reversal in early trading this morning, but that didn’t wash away the jittery sentiment that technically still remains high.
As of this writing, ETH/USD is near the 3000.00 level, which is an important psychological mark for Ethereum speculators. The last few weeks of trading within ETH/USD proved challenging for optimistic bull speculators who believed that Ethereum, along with its major counterparts, had dusted off its long-term downtrend 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 not seen since the 18thand Of March. This date in mid-March, however, was a time when ETH/USD began to rise after bottoming out near 2440.00 on the 12th.and Of March. The bullish rally that started in mid-March started to reverse at the low during the first week of April.
Trade sentiment has become fragile in the vast cryptocurrency market and ETH/USD has certainly seen some painful selling in recent days. Speculators may consider the notions of false rallies and false correlations as they try to assess the short term and bets. Yesterday’s drop to a 1-month low and a sudden reversal to the upside may have triggered some buying, but the question is whether this can last and whether current resistance levels near 3050.00 can actually be penetrated higher.
ETH/USD is in a very speculative trading range and some rather intriguing correlations are starting to emerge as to why Ethereum and the vast cryptocurrency market are in trouble. Technical traders might want to take a look at the NASDAQ 100 and compare it to the results of ETH/USD last year; they are eerily similar in some ways. However, this does not mean that the results can be proven. However, this suggests that “riskier” assets are under pressure as some speculative investors seek out quieter assets.
If ETH/USD can hold a price above the 3000.00 level, it could be a short-term positive indicator, but if the cryptocurrency struggles and stays below that point, it could mean a increased sales pressure. Jittery conditions continue to trouble cryptocurrencies and ETH/USD has not escaped this cautious behavioral sentiment. Selling ETH/USD short when it approaches technical resistance can prove to be a valid bet in the short term.
Ethereum Short-Term Outlook
Current Resistance: 3,043.00
Current support: 2,962.00
High target: 3,116.00
Low target: 2,773.00