ETH/USD has been confronted by resistance which has proven durable since late last night, and key support levels are now in sights as values are tested.
ETH/USD is near the 3085.00 level as of this writing. The high for Ethereum touched the 3168.00 ratio yesterday, but then a noticeable amount of headwinds started to be seen in ETH/USD which sank the cryptocurrency to a low of nearly 3031.00. Yes, ETH/USD has climbed since hitting this lower value, but Ethereum remains within sight of support levels which may make some speculators nervous.
On the 3rd of April ETH/USD had climbed back to a rather healthy looking 3580.00 price, a value not seen since the first week of January 2022. However the past two and a half weeks of trading have proven difficult for Ethereum and the broad cryptocurrency market, as buyers have seemingly tapped on the brakes and a trend downward has once again been displayed.
A low of nearly 2880.00 was touched on the 18th of April, which is a juncture ETH/USD had not seen since the end of third week in March. Ethereum has climbed higher after hitting this low a few days ago, but traders with memories of the bearish trend, which has occurred in ETH/USD since November of 2021 are likely fearful that additional selling pressure may be demonstrated. Bullish speculators who believe ETH/USD has been oversold should watch current support near the 3056.00 mark, which is nearby. If this level becomes vulnerable it may not be a good short term signal.
The 3000.00 mark could prove to be significant in the near term. Any move below this value could set off alarm bells within skeptics who may believe another test to lows is going to be exhibited. The notion that Ethereum may have been part of a dead cat bounce within a long term bearish crypto market may gather more nervous sentiment. The 3000.00 value may prove to be a significant barometer of market psychology for crypto traders.
If ETH/USD can maintain its current price levels and produce buying action which sees the 3100.00 level toppled and sustained, this could spark the interest of buyers. Momentum trading in the near term may prove to be a solid tactic for both bullish and bearish traders as the broad cryptocurrency markets displays rather choppy results. Conditions the past handful of days highlight the need for cautious amounts of leverage to be used while wagering on ETH/USD. The use of take profit and stop loss orders should be practiced in order to insure reversals are not suffered for being too speculatively ambitious.
Current Resistance: 3107.00
Current Support: 3056.00
High Target: 3187.00
Low Target: 2953.00