ETH/USD has fallen sharply in early trading this morning, which has sustained Ethereum’s bearish short and mid-term trends.
As of this writing, ETH/USD appears very vulnerable as important support levels technically are coming into focus. Ethereum is traversing near the 2510.00 mark currently, but traders are encouraged to check on the value of ETH/USD upon reading this article to judge how far away the price may be compared to the timing of this article. Ethereum and the broad cryptocurrency market are not only showing bearish short term signals, but a rather dangerous mid-term downward trend continues to create havoc and nervousness.
ETH/USD is actually now within sight of lows which occurred during the sharp declining spikes that took place in January. The current price of ETH/USD is hovering near late January values and if current support levels prove weak, traders cannot be blamed for thinking the 2450.00 ratio and potentially even greater depths may be seen sooner rather than later. However, if a trader is going to sell ETH/USD in the present market conditions, they should remain realistic about price targets and not let an overly ambitious monetary goal keep them in a trade too long.
There are no guarantees ETH/USD will only go down in value. A strong reversal upwards is always a possibility within cryptocurrencies and experienced traders may even view the price of ETH/USD as oversold and a potential place to look for counter moves higher. However, the broad cryptocurrency market and ETH/USD are displaying troubling signs.
Technically, ETH/USD has not hit rock bottom prices which were demonstrated last month; on the 24th of January, Ethereum hit the 2170.00 level. Intriguingly for speculators, the observation the current price action downward, while fast, has not occurred with the same type of ‘dart like’ spikes lower seen last month. Trading volume has also remained rather polite the last week including the past few days, which potentially signals more weakness to come from ETH/USD. The trend lower has not reached full scale panic trading levels. In other words, it could get worse.
Current market conditions in the broad cryptocurrency market are dangerous, and traders who are brave enough to participate today need to practice solid risk management. The use of entry orders can help attain price fills which meet expectations. Short-term traders cannot be blamed for believing more downside price action is going to develop, but wagers in what could prove to be extremely choppy ETH/USD trades today will need a high degree of cautious perspective.
Ethereum Short-Term Outlook
Current Resistance: 2582.00
Current Support: 2482.00
High Target: 2672.00
Low Target: 2295.00
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