ETH/USD: Short-Term Bullish Reversal Could Prove Dangerous

ETH/USD has recovered from an important lower value demonstrated yesterday and reversed higher which effectively puts it into a dangerous speculative mode

ETH/USD has produced technically curious trading in the past twenty-four hours.  After sinking to a low of nearly 2775.00 yesterday, Ethereum has reversed higher and is now within the realm of resistance levels which have proven durable the past ten days. While the resistance junctures of 2700.00 to 2765.00 are in plain sight, ETH/USD also remains within shouting distance of the 2600.00 mark. If the 2600.00 level is punctured lower it could prove to be a key inflection point for the bearish speculative sentiment.

Ethereum logo

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The past week and a half has established a rather intriguing price range between 2200.00 and 2800.00, yes, there have been outliers, but values within this band will prove to be important for traders in the short term. The question is if the broad cryptocurrency market can shake off its recent negative trend and begin to create positive momentum upwards. Speculators have a rather difficult decision to make and conservative traders may feel more comfortable waiting for a pronounced trend to emerge.

Fortunately for aggressive speculators, the rather consolidated support and resistance levels which have been produced in the short-term could prove to be rather attractive as a place to wager. ETH/USD has not produced the massive percentage changes via value fluctuations that it made in mid-May, Ethereum has traded dare it be said - rather politely – the past week.

Technically the current consolidation has created a difficult choice ETH/USD to determine direction.  The wave of bearish sentiment within ETH/USD which has been abundant has not been forgotten, and yesterday’s test of lows remains an ingredient to worry about for speculators. If nearby support around the 2600.00 level is penetrated lower and values are sustained below the 2578.00 price, this could set off another wave of selling due to an upward trend not being able to be maintained.

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