ETH/USD is set to begin January’s trading within sight of important support ratios, having failed to produce a significant upward reversal the past few weeks.
Ethereum has struggled during the month of December. On the 1st of the month ETH/USD was trading within sight of 4700.00, and as the month comes to a close it is almost one thousand USD lower. As of this writing, ETH/USD is near the 3750.00 mark and traders who want to simply wish away the downturn may be finding it difficult to catch momentum upwards via their wagers. Since the beginning of December, ETH/USD has shown an incremental inability create a strong wave higher.
While the highs of late November came within sight of record highs seen weeks before, ETH/USD has struggled since achieving these apex levels. The 3700.00 level ETH/USD is currently within sight of will not create a great amount of optimism in traders, unless they are long-term proponents of the cryptocurrency and are using a buy-and-hold mentality. Short-term traders as always need to use their leverage wisely and if they are in the mood to look for reversals higher based on the notion that ETH/USD has been oversold, they should keep their ambitions realistic.
ETH/USD should be looked at by technical traders as a place to test their sentiment and perceptions. While it is true that ETH/USD was trading above the 4100.00 juncture on the 21st of December, Ethereum also was not able to muster enough buying momentum to seriously challenge lower resistance levels from early in the second week of December.
The broad cryptocurrency market had a rather impressive October and November, but ETH/USD along with its major counterparts have seemingly taken a breather and are traversing values seen early in the second week of October. If ETH/USD continues to face headwinds and it is not able to muster a buying surge in the short term it will likely not scare off long term optimists of Ethereum. However, if ETH/USD not only fails to break above its current short-term higher resistance levels, but also sees more selling demonstrated this could cause nervous selling sentiment to increase.
January may prove to be an important month for ETH/USD. While the holiday season is certainly affecting global markets and their trading volumes, it is questionable if institutional traders are having an effect on the price as it bounces near crucial lower prices.
ETH/USD Outlook for January
Speculative price range for ETH/USD is 3143.00 to 4500.00.
If support for ETH/USD fails to hold back the 3700.00 ratio, this could set off alarm bells among Ethereum traders. Trading the past couple of days has seen the 3550.00 USD level tested and hold, but if this lower support fails and ETH/USD suddenly is within sight of the spike lower which occurred on the 2nd of December this would not be a positive signal. Trading momentum has been negative the past couple of weeks for ETH/USD as it has struggled to make a significant move higher. Until the 3850.00 mark is traversed higher, Ethereum continues to look like it is within a bearish trend.
ETH/USD has not been positive the past few weeks in a significant manner, but bullish traders are still lurking. If ETH/USD begins to come within sight of the 3900.00 level, there should be little doubt that the 4000.00 juncture may be aimed for by speculators. Risk management is essential when trading cryptocurrency and speculators need to acknowledge that huge percentage moves still are a daily part of the trading landscape. Cashing in winning profits and not letting them vanish into air is an important tactic to use. If ETH/USD can break above the 4000.00 juncture and begin to challenge the 4100.00 to 4200.00 levels this would be important. Any trading above the 4250.00 prices would signal another robust amount of buying could develop and challenge levels beyond in a quick fashion.
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