ETH/USD: Tumble Lower And Crucial Short-Term Support Levels

ETH/USD suffered a swift decline in value this weekend which correlated to the broad cryptocurrency market and is now near important short-term support.

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ETH/USD was trading near the 4660.00 mark on the 3rd of December. Selling pressure began to build within Ethereum on the 4th and developed into a flash crash which took the value of ETH/USD to nearly 3475.00 briefly. The price of Ethereum has recovered and, as of this morning, ETH/USD is near the 4100.00 ratio. Velocity has been fast in all of the cryptocurrencies the past couple of days. While yesterday’s reversal higher was significant, ETH/USD actually is traversing near what can be perceived as crucial support levels.

Traders certainly need to recognize the dive ETH/USD took on Saturday regarding its flash crash. But the price of ETH/USD only touched the lower values momentarily and the fact that those lower levels were not sustained is important. However, ETH/USD is still below values it was trading last week and it is now testing support levels which were tested in the middle and end of November.

ETH/USD traded near a record high of almost 4880.00 on the 10th of November, but has seen choppy conditions since then. On the 26th of November, after suffering headwinds following the all-time highs in the second week of the month, ETH/USD was trading near 3915.00 before reversing higher and achieving a ratio of approximately 4785.00 only two days later. Since reaching the 4785.00 price and factored at its current value today, ETH/USD has lost almost 18% of value.

Traders face a difficult decision as the week begins. Volatility is part of the trading landscape for ETH/USD, but its recent price action has seen an increased amount of velocity which means using stop loss and take profit tactics is vital for reasonable outcomes. Speculators who pursue ETH/USD for short-term endeavors know the cryptocurrency is a wager. In order to get solid results with Ethereum traders need to keep realistic goals and not become overly ambitious as they pursue momentum.

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