ETH/USD is still within the lower part of its long term price range, as support levels try to hold back selling and reversals higher fail to impress.
As of this writing, ETH/USD is near the 2380.00 level as it lingers within long-term depths and broad cryptocurrency market nervousness remains on full display. ETH/USD hit an early low yesterday of 2195.00 which had not been seen since the spike downward on the 24th of January. However, to make the dark news even worse, ETH/USD remains within a price juncture it has not sincerely traded for a long duration since late July of 2021.
While optimistic bullish traders who like to buy when they believe ETH/USD has been oversold may be lurking, they have failed to produce a significant run higher. Resistance levels above the 2440.00 mark appear rather durable. Until Ethereum is able to actually brush aside several technical upward hurdles, any type of upwards trajectory will not be taken seriously by trend followers.
If ETH/USD continues to struggle near the 2400.00 juncture and if the cryptocurrency proves incapable of establishing a push above, bearish speculators may remain in a hunting mode for more downward momentum. The broad digital asset market remains tentative and ETH/USD as a leader of the pack has demonstrated a lack of firepower. If the 2365.00 suddenly becomes vulnerable, traders cannot be blamed for believing additional lower ratios will be exhibited.
The danger for ETH/USD is actually rather stark and nearby, regarding technical levels which may prove to be rather important. If the 2340.00 juncture begins to be seriously challenged, Ethereum may be signaling that it is ready to fall with greater velocity. Until now through the selling carnage which has been on full display the past week, ETH/USD has been able to hold back the worst of the selling tides. Ethereum’s long term support levels have been flirted with but have not completely collapsed, if the 2340.00 is brushed aside and falters without a solid reversal higher, this could ignite a storm lower which once again tests long term support.
Traders are urged to use solid risk taking tactics due to the amount of nervousness in the markets. Yesterday’s trading was calm compared to Monday’s, but shadows lurk and mistaking quiet as the end of storm could prove dangerous.
ETH/USD could simply be in the eye of the hurricane and remain quiet for a little while longer, until turbulence is delivered with full force again. Speculators who want to be sellers cannot be blamed for their wagers, but they should practice caution and keep their price ambitions realistic.
Ethereum Short-Term Outlook
Current Resistance: 2423.00
Current Support: 2349.00
High Target: 2488.00
Low Target: 2168.00