ETH/USD is trading below the 1900.00 price as of this morning, but only a handful of hours before Ethereum had been trading below the 1800.00 level. The ability of ETH/USD to drive higher within a few hours of time is not new; its ability to achieve short term highs not seen in a week is the news which may perk up the spirits of bullish traders who have been disappointed with the constant barrage of downside reversals.
In early trading this morning the broad cryptocurrency market has shown some buying momentum among the major digital assets. However, speculators do not need to be reminded that a long term bearish trend has been in power and that short term moves higher have been hit constantly with strong reversals lower. Intriguingly the buying this morning took place with a solid amount of price velocity which was displayed in ETH/USD and Bitcoin as well.
However, the short term highs achieved by ETH/USD while perhaps optimistic, thus far have failed to topple ratios seen in the last days of May and the first day of June. ETH/USD has seemingly run into resistance near the 1900.00 mark as it fights for value around 1875.00. If Ethereum cannot run past the 1900.00 juncture and sustain this value, it may actually indicate that the short term buying power may be running out of steam.
Traders who take a look at one month charts will see quite clearly that ETH/USD remains within the lower depths of its price range. While the short term move higher may make day traders happy who were able to look for quick hitting upside action, the results may also intrigue skeptical traders who have been pursuing downside price action. If ETH/USD is not able to muster more buying and challenge resistance around the 1925.00 to 1950.00 values short term, it may be a signal that looking for lower marks with Ethereum could prove worthwhile wagers.
On Friday and Saturday of last week ETH/USD was trading below the 1800.00 mark consistently. Yes, ETH/USD was able to climb higher early this morning, but it still has not escaped its bearish trend. Speculators may want to continue to try and sell ETH/USD if it fails to challenge short term resistance levels, while looking for quick trades that use support levels as take profit targets.
Ethereum Short-Term Outlook
Current Resistance: 1944.00
Current Support: 1840.00
High Target: 2025.00
Low Target: 1721.00