ETH/USD has broken through to new highs, and speculators who have enjoyed a tranquil market should brace for a faster pace.
ETH/USD continues to brush aside resistance in a rather easy manner. A high of 2765.00 was touched yesterday and, as of this writing, Ethereum remains above the 2700.00 level, with most eyes focusing on the potential record values to be achieved. ETH/USD certainly has reversals downward which must be contemplated and planned for while using risk management, but the cryptocurrency remains within a speculative storm which is embracing loftier prices.
If and when resistance near its record highs made yesterday prove to be another momentary delay before reaching more exuberant values, ETH/USD traders will likely aim for the 2800.00 juncture and above. ETH/USD has demonstrated a steady ability to move fast and higher. However, after hitting a high of 2713.00 early yesterday, ETH/USD did see some selling and fell to a price of nearly 2560.00 before reversing higher again. Traders need to be ready for moves of over one hundred USD taking place while they go on a coffee break sometimes. The tranquil trading of ETH/USD may evaporate if traders sense headlines with the mark of 3000.00 being mentioned.
The broad cryptocurrency market has been choppy the past couple of days, but ETH/USD has continued to shine within a speculative bubble. Traders should use stop losses to manage their risk, but from a risk-taking viewpoint, they also need to have a specific goal regarding value targets they are hoping to attain. The use of leverage when trading ETH/USD can create fireworks within a speculator’s trading account and if profits are not cashed in swiftly, money can vanish without much notice.
Traders who want to sell ETH/USD and chase the potential of bearish trends are strongly advised to reconsider their desire for this technical adventure. Money can certainly be made by shorting ETH/USD, but going against the massive amount of bullish momentum which exists for Ethereum currently is akin to stepping in front of a speeding train. The question traders should be asking is how do they step onto the train safely and go for a ride.
The use of limit orders and buying ETH/USD on slight pullbacks towards support is a conservative approach traders may want to take. Because ETH/USD moves quickly, establishing what is a solid support level to activate a buying position of ETH/USD remains tricky. Buying ETH/USD at live market prices may lead to rather disturbing price fills. Aggressive traders who want to get into Ethereum now cannot be blamed, but they should also practice some degree of caution when they place their buying orders.
Ethereum Short-Term Outlook:
Current Resistance: 2760.00
Current Support: 2685.00
High Target: 2825.00
Low Target: 2650.00