ETH/USD is battling technical highs as the price of the cryptocurrency comes within vicinity of record values.
ETH/USD is traversing higher territory in early trading this morning and appears to be waging a battle against technical highs it last touched on the 13th of March. If the current values of Ethereum are able to puncture this resistance, traders will then turn their attention to ETH/USD’s highest summit made on the 20th of February when the cryptocurrency momentarily tested prices above 2000.00.
ETH/USD has provided traders with a very good lesson in the past day. The past week of trading has produced incremental rises in value which have certainly inspired thoughts of the high prices now being seen, but yesterday also saw a strong spike lower which hit the 1770.00 mark hit below.
The simple lesson is that a massive amount of leverage, if it is being used when trading ETH/USD, can be a giver and a taker. For traders that were over-leveraged and pursuing buying positions yesterday, it is possible they were knocked out of the game during yesterday’s decline and are not participating in today’s battle of important resistance.
Market sentiment within cryptocurrencies remains optimistic. Why the market is so exuberant is an argument that has no simple answer. Some people will claim that the massive stimulus being proposed in the US underscores the need for digital currencies that are decentralized. However, what is certain is that ETH/USD appears ready to provide further displays of power and prove that its bullish trend has the ability to climb higher.
Before traders get too excited and buy ETH/USD, they should understand by taking a look at yesterday’s quick move downwards that trading positions can go wrong too. ETH/USD remains a speculative asset that is dangerous and must be treated with caution. Speculators who have the ability to pursue further upside may be inclined to use slight pullbacks in ETH/USD to assert their buying positions. If ETH/USD is able to sustain its value above the 1900.00 level, traders cannot be faulted for looking at the 2000.00 juncture with the belief it may be tested sooner rather than later.
The next few trading days of ETH/USD are certain to be volatile. The potential of record highs will fuel speculative trading, and risk management will be essential while trying to take advantage of the bullish trend which seems to have found additional firepower.
Ethereum Short-Term Outlook:
Current Resistance: 194600
Current Support: 1905.00
High Target: 2000.00
Low Target: 1885.00