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ETH/USD is traversing above the bearish 2400.00 threshold as of this writing, and Ethereum’s failure to puncture resistance levels above may be considered a negative indicator too. The 2400.00 ratio below is important, and if it proves vulnerable, traders may believe that another test of lows is going to take place. On the 13th of June, ETH/USD did trade near the 2300.00 level, but was able to withstand the selling pressure which produced a short-term high of nearly 2645.00 on the 15th.
Speculators who continue to believe ETH/USD should produce another round of bullish momentum may be growing cautious. Ethereum has not been able to make a substantial push upwards. On the 7th of June, ETH/USD was trading above the 2800.00 mark, but has demonstrated an incremental decrease of resistance levels since then and has established a new short-term ratio of 2636.00 as a high water mark.
Over the past couple of months, ETH/USD showed signs of outperforming its major counterpart, Bitcoin. However, the past few weeks have begun to see Ethereum’s stronger correlation to BTC/USD erode. Technically, price momentum could shift with one sharp spike, but from a behavioral sentiment perspective, the value of ETH/USD is likely not generating a bullish signal for short-term traders. Speculative bulls may look at the current price action and proclaim this is merely a healthy consolidation of value for ETH/USD and a strong reversal higher will ensue.
However, the problem for ETH/USD is the obvious fact it has had a hard time puncturing resistance and it continues to tests support levels. If the 2400.00 ratio is punctured lower and values are sustained below, further selling pressure could certainly develop. Short-term moves higher appear to face headwinds for ETH/USD.
Traders should also keep in mind that ETH/USD traded near a low of 2240.00 as recently as the 12th of June. Bullish speculators may believe these low water marks are a buying opportunity. But skeptics may believe that support levels may not be able to withstand negative selling pressure if Ethereum tests lower depths again, and a flood gate could open which allows ETH/USD to lose more value. Bearish speculators may want to consider additional selling positions and wager that there is more downside about to be explored. Traders should use stop loss orders and monitor ETH/USD carefully.
Ethereum Short-Term Outlook:
Current Resistance: 2471.00
Current Support: 2385.00
High Target: 2563.00
Low Target: 2290.00
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