Short-term highs approached via adequate reversal
ETH/USD is flirting with near-term highs as an intriguing reversal to the upside has formed and could stir the hearts of optimistic bull speculators.
In early morning trading, ETH/USD was able to reverse momentum from 2,000.00 and briefly peaked near the 2,224.00 ratio. A slowdown has occurred since the high was reached and ETH/USD at the time of writing is below the 2000.00 mark. However, ETH/USD has not experienced a violent downward reversal and its ability to flirt with the 2,000.00 conjuncture may be enough to pique the interest of bullish speculators.
This morning’s price action is unlikely to be enough to create a broad shift in speculative fever. 27e of May, ETH/USD was trading below the price of 1,700.00 that was last sincerely traded with high volumes in March 2020. The long-term downtrend within the broad crypto markets -currency cannot yet be proclaimed dead. However, technical traders will no doubt be watching the 2000.00 level with interest.
If Ethereum is able to breach the psychologically important 2,000.00 mark and hold its value above it, it would raise some eyebrows. From 12e until 23rd From May, ETH/USD fought the 2000.00 region and eventually melted below the level, and started looking for new long-term lows with an overwhelming amount of selling. The question day traders need to ask themselves is whether the rally now showing has a legitimate lifespan or if it will quickly fade away.
Short-term momentum traders who are aggressive may want to pursue the target of 2000.00 and slightly above for quick trades. Trading costs need to be considered with such close targets, increasing the possibility that higher leverage is needed to create profitable results when trying to scalp ETH/USD with quick results – which involves significant risk if the market goes against the speculator. Traders who prefer momentum to be on their side may want to wait for Ethereum to show even better results.
Should the resistance level of 2,025.00 be challenged and penetrated higher, it may prompt additional buying. However, skeptical traders who continue to hide and do not believe that ETH/USD has seen the last of its downtrend, may believe that if ETH/USD cannot mobilize much price action at Above the price ranges of 2,010.00 to 2,025.00, more selling will occur. Speculators looking for further downside movement can target the 1975.00 to 1965.00 marks cannot be blamed. Choppy conditions are likely to be seen in the near term and traders should remain cautious.
Ethereum Short-Term Outlook
Current Resistance: 2019.00
Current support: 1939.00
High target: 2,078.00
Low target: 1,844.00