After hitting record values the second week of May, ETH/USD has promptly been hit by the widespread and bearish nervous sentiment pervading cryptocurrencies.
On the 12th of May, ETH/USD was trading within a hair of the 4400.00 mark. However, by the 23rd of May, ETH/USD was trading within sight of the 1700.00 price. What happened during that week-and-a-half of trading that changed the landscape for Ethereum speculators? ETH/USD was outperforming the broad cryptocurrency market when May began, and whispers could be heard from some analysts and influencers that Ethereum was showing it may be on a path which could eclipse Bitcoin in stature.
Broad market sentiment within cryptocurrencies did start to wobble a bit towards the end of April, but intriguingly, ETH/USD continued to push higher and saw its price peak as mentioned on the 12th of May. Over-exuberance in cryptocurrencies was certain to stumble at some point. Historically, speculative assets never enjoy a one-way avenue, and reversals often occur when speculators least suspect their chances of unfolding.
As the month of June is ready to start, ETH/USD has seen its value almost half. The current price vicinity of Ethereum has recovered from lows seen on the 23rd of May, but ETH/USD is still within sight of targets which will make speculative bulls who are counting on a reversal higher quite nervous if they look reality in the eyes. Suddenly, the junctures of 2700.00 to 3000.00 have proven to be a huge mountain to climb as resistance seemingly begins to look durable below these price levels.
ETH/USD has enjoyed a solid amount of bullish speculation the past six months, but it has certainly found that it correlates with the broad cryptocurrency market and cannot escape the nervous sentiment that pervades speculators. Technically, ETH/USD is also hovering above important support levels which continue to likely stir the minds of traders who can see the junctures of 2200.00 to 2000.00 and wonder if they will be tested sooner rather than later. The current bearish trend of ETH/USD continues to languish, and for results to improve with added value in June, a push upwards will have to prove it can be maintained without violent spikes downwards.
However, while ETH/USD continues to stay within sight of its lower price levels which are testing mid-April values, traders cannot be blamed for having a negative outlook. Yes, cryptocurrencies, including Ethereum, have a history of suddenly reversing higher and making mincemeat out of technical perceptions, but the combination of nervous behavioral and technical sentiment make it difficult to expect a strong turnaround in the coming weeks.
ETH/USD Outlook for June:
Speculative price range for ETH/USD is 1450.00 to 3200.00.
ETH/USD is shadowing the 2400.00 support level as of this writing and, if Ethereum dips below the 2300.00 to 2200.00 marks, it could produce selling, which may begin to believe that the 2000.00 value is a target. If nervous selling builds and the 2000.00 mark deteriorates and holders of Ethereum feel as if they need to unload the cryptocurrency before the markets goes lower, ETH/USD could then test lows seen on the 23rd of May. If values plunge below 1700.00 and show any signs of being sustained, then depths not seen since February could be targeted.
Resistance near the 2600.00 to 2800.00 price range should be watched. If values spark higher and the upper part of this resistance range starts to look vulnerable, traders can logically begin to expect that the 3000.00 juncture will come into play. Speculators should be ready for more volatility within ETH/USD and expect large percentage changes in value to be demonstrated again. Traders need to use their risk management wisely and not over-leverage their positions.