ETH/USD has fallen to new lows for the month of May, and with June set to kick off in a few days, trading conditions are anxious and intriguing.
ETH/USD is trading below the 1800.00 level at the time of this writing and the broad cryptocurrency market remains fragile. Many other cryptocurrencies use Ethereum as a barometer of speculative conditions. ETH/USD crosses its lowest values posted in May, and as June waits to release its trade support levels, it continues to look vulnerable. Ethereum’s major counterparts are also challenged by long-term low prices as bull speculators seem to have lost their appetite for risk.
The crux of the matter for ETH/USD is that its value is testing vital support barriers that are technically short and long term. The lows test prices from mid-May, but also challenge the values seen in July, June and May 2021. If these crucial barriers are breached lower and ETH/USD breaks through the 1700.00 mark and shows an inability to move past this stage quickly, this could set off strong alarm bells among mainstream Ethereum investors and traders.
With the 2000.00 conjuncture giving way earlier this week and cannot be recaptured with an upside reversal that could be sustained, the fact that ETH/USD is now swimming near last year’s crucial support is ultra-worrying. . Technically, ETH/USD has yet to have a sellout trade like its primary Bitcoin counterpart.
This may be an outlook, but it is based on the notion that BTC/USD is trading at prices close to the prices seen in January 2021 and December 2020. Ethereum has yet to hit those lows, which means that if ETH/USD fell to the January 2021 and December 2020 values, it would technically be trading near the 1,200.00-1,000.00 ratios.
ETH/USD’s current price action is not building confidence and its magnetic price action near current support levels suggests that if the next major levels demonstrate weakness, this downward price momentum could be problem. April was a bad month for ETH/USD, but May proved to be equally unpleasant in terms of downward movement if a speculator was trying to find sustained bullish momentum. Ethereum’s long-term downtrend is still showing teeth, and until higher and sustained resistance levels look vulnerable, shorting ETH/USD is likely to attract sellers brave enough to swim in. its swirling waters.
ETH/USD outlook for June
The speculative price range for ETH/USD is 986.00 to 2827.00.
Traders should be extremely cautious as ETH/USD crosses its current territory. The use of conservative leverage, stop loss and take profit orders cannot be emphasized enough. If ETH/USD were to break above 1700.00 and hold prices below, it would be an additional bad signal. The current price of ETH/USD is also a bad indicator. However, if the 1700.00 ratio turns out to be weak and the 1650.00 mark is suddenly targeted, the price momentum could get pretty bad for all speculators.
Yes, higher reversals will definitely be seen, but for perspective – day traders need to ask themselves how long they are willing to hold a long position under current trading conditions. The upside moves have been hit by strong downside reversals on a regular basis and this may continue into June. Jittery market sentiment continues to run high and traders who believe ETH/USD is grossly undersold need to understand, while they may prove correct in the long run, that they may not have may not have enough money in their accounts to withstand any further downward spikes that may be seen in the coming weeks.
ETH/USD has shown an extremely intriguing consolidation over the past few days as it crosses the lower parts of its price range. Short-term traders cannot be blamed for chasing further bearish momentum; however they must be extremely careful. Yes, cryptocurrencies have a known history of violent price action, but the coming weeks could be more turbulent than normal if significant support levels in ETH/USD are flirted below.