ETH/USD has recovered from its June 18th lows when it traded near 885.00, but if the bearish trend remains intact July could produce new significant depths.
Speculators who are holding ETH/USD may not want to read this article because it will not be the most optimistic perception of Ethereum they will see. As the month of June comes to a close ETH/USD has in fact risen from the lows it saw on the 18th of June, which explored depths near the 885.00 ratio briefly. The price of ETH/USD is a relatively comfortable 1215.00 as of this writing. If you were able to buy ETH/USD at the lowest values in June and have profited congratulations. But perhaps this is where you might want to stop reading if you plan on holding ETH/USD into July.
This is an opinion piece clearly, what is written doesn’t mean ETH/USD will do as I say, in fact it may do the exact opposite. However, the long term bearish trend that ETH/USD has suffered from is still in full effect. Unless much higher levels of resistance are toppled and the value of ETH/USD soars to a height it hasn’t seen April of 2021 when Ethereum was trading near 3500.00, there will still be some holders of ETH/USD likely underwater taking into consideration their long term trading results.
The notion that ETH/USD is trading about 300.00 USD higher as of this writing compared to the lows seen in June are solid results, but it doesn’t brush aside the chaos and loss of money which took place in the past few weeks. When the month of June started ETH/USD was essentially trading near the 2000.00 level, and since falling through the 1700.00 ratio on the 10th of June, ETH/USD has fallen violently and doesn’t appear ready to stand up.
While the ability to trade above 1200.00 is welcome, unless ETH/USD can sustain this level and incrementally post new highs without significant reversals lower it remains under skeptical technical perceptions. If technical traders look at long term charts, there is no denying that Ethereum is currently trading within a dangerous price band that is testing values from January of 2021 and December 2020.
If the current price of ETH/USD falls below the 1200.00 in the near term this will not be a positive sign, particularly if it cannot climb back above the 1200.00 in a healthy manner and sustain value. Small moves upwards are suspicious and may prove to be ‘sucker bets’ in which people are tempted to buy into incremental higher ratios, only to watch values sudden stumble lower and wipe out their wagers on ETH/USD. As the month of July gets ready to start, there has been little evidence to suggest a new buying parade is going to erupt and launch ETH/USD to solid heights.
ETH/USD Outlook for July
Speculative price range for ETH/USD is 463.00 to 1800.00.
If ETH/USD breaks below the 1150.00 mark and suddenly finds itself testing the 1100.00 to 1000.00 range again, this will cause nervousness in the marketplace. A fall below 1000.00 would certainly set off alarm bells within the nervous broad cryptocurrency market which still exist. If the 1000.00 mark is proven vulnerable and a retest of June 18th lows begin to take place, there is dangerous support in this area.
If the 966.00 mark is tested and prices are sustained in this vicinity ETH/USD could quickly find a challenge of the 880.00 level again. If this juncture were to look weak and Ethereum continues to see a selloff, then December 2020 support could evaporate and a price of around 660.00 could be tested. This is not written to scare or entice speculators; it is simply an interpretation of technical charts and taking into consideration current market sentiment via my perceptions.
For optimistic bullish traders who have made it through this less than flattering look at the current state of ETH/USD trading, yes, you can still buy Ethereum. Traders who want to be buyers should look for quick hitting trades that cash out profits when anticipated resistance levels have hit their profitable targets. Leverage should be used extremely cautiously; ETH/USD is likely to remain volatile.
If price velocity suddenly emerges, it may be to the downside, stop loss orders should be used to protect money. If ETH/USD breaks above the 1275.00 mark, perhaps the 1300.00 area can be speculated on. It should be noted that a strong dose of resistance looks to be quite stiff around the 1700.00 level. Can this actually take place in July? Before that higher value is attained, ETH/USD would have to prove it has a significant amount of buyers willing to speculate on upwards momentum and hold onto their positions. Until that happens doubter will remain abundant.