ETH/USD has experienced a strong selloff, and the broad cryptocurrency market is challenging important support levels across the spectrum.
ETH/USD is trading near the 1750.00 level as of this writing. Yesterday’s early trading took ETH/USD above the 1900.00 mark, but it was not able to sustain higher momentum and began to show signs of erosion rather dramatically towards the end of the day. Early trading this morning has seen Ethereum and other major cryptocurrencies including Bitcoin tumble. The bearish trend in digital assets has seemingly decided to challenge crucial support levels today.
The inability of ETH/USD and its counterparts to build on yesterday’s early momentum was a negative signal. Technically there are also indications that selling volume increased significantly when short term resistance levels were not seriously tested, which suggests some speculators who had been holding on decided to get out of the market.
ETH/USD is now flirting with long term lows and if it breaks below the 1720.00 support barrier, this could set off a negative chain of additional selling. ETH/USD is now within vicinity which it is traversing prices not seen since February of 2021. The long term bearish trend has been able to muster some buying when the 1700.00 price level has appeared ready to be broken in May and in early June, but gut instinct among speculators may believe ETH/USD could be ready to explore lower depths of value.
Traders who are convinced they can buy at current lows and look for short term moves upward which allow them to cash out winning positions can certainly wager, but they need to be using solid risk management. Price velocity this morning has been strong and it has been negative. Lower values in Ethereum and Bitcoin have been tested the past couple of months and held, is today the moment crucial support levels break?
If market conditions in cryptocurrencies remains negative and buyers disappear due to a lack of confidence, ETH/USD and other digital assets could falter to cheaper prices near term. The 1720.00 level could be vital for Ethereum today. If this price sees a sustained challenge and prices dip below, selling could increase again.
Day traders who want to try and sell ETH/USD based on the notion there is further room to move downwards cannot be faulted. Sellers should keep realistic targets in mind and be willing to cash in profits before they vanish into thin air. Ethereum looks ready to deliver a volatile day of trading ahead.
Ethereum Short-Term Outlook
Current Resistance: 1794.00
Current Support: 1721.00
High Target: 1865.00
Low Target: 1597.00