ETH/USD is still within sight of its lowest short-term depths, but the cryptocurrency has been able to display speculative reversals higher which have created choppy conditions.

ETH/USD is trading around the 1200.00 mark as of this writing.  While Ethereum is certainly still able to be viewed close to its lowest depths, reversals higher in the short term have been abundant and made for speculative and choppy conditions. Yesterday’s early low in ETH/USD was approximately 1011.00, which definitely caught the attention of the broad cryptocurrency market.

The long term bearish trend in ETH/USD is loud and clear. Speculators with a taste for adventure could wager on upside when perceived support levels are flirted with and try to capture rebounds upwards, but getting out of buying positions before they run into headwinds remains difficult to time. ETH/USD did reach a high of nearly 1254.00 early this morning, which beat all of yesterday’s highs, but Ethereum was not able to puncture – or even really get close – to the 1280.00 mark which could stir additional speculative hearts.

The move higher across many of the major cryptocurrencies in the past half day may calm the digital asset market temporarily, but all it would take is another dose of selling to reignite the thought that new lows are going to be demonstrated. Short-term support near the 1153.00 should be monitored, sustained trading above this level could spark confidence, but if it is penetrated lower selling shadows could reemerge quickly. The question traders need to confront is just how long they can maintain a position within the choppy conditions which are prevailing.

It is likely that short term trading will produce rather whipsaw effects for speculators.  After the thunderous move downwards which was delivered the past handful of days, a break in the tidal wave lower may be logical. However, if ETH/USD continues to stay within sight of lows hit yesterday and is not able to enjoy a sincerely strong move up and above the 1300.00 level, traders will likely remain suspicious that selling pressure will once again be demonstrated. The question is when?

Short term traders with superb risk taking tactics and the ability to maneuver their leverage conservatively, use entry points, stop and take profit orders wisely could participate in ETH/USD with quick hitting trades trying to take advantage of short term gyrations. The upside may have brief moments of wagering ability. But traders’ who are still skeptical and believe more bearish momentum will be generated, may simply want to wait for resistance to emerge technically and then short Ethereum. ETH/USD will remain extremely dangerous to trade near term and traders need to be cautious.

Ethereum Short-Term Outlook

Current Resistance: 1255.00

Current Support: 1155.00

High Target: 1386.00

Low Target: 970.00

There is a likelihood that the pair will keep rising as investors target the key resistance level at 1.1000.

Bullish View

• Buy the EUR/USD pair and set a take-profit at 1.100.
• Add a stop-loss at 1.0800.
• Timeline: 1-2 days.

Bearish View

• Set a sell-stop at 1.0800 and a take-profit at 1.0750.
• Add a stop-loss at 1.0900.

The EUR/USD price rose slightly on Wednesday and early Thursday as investors wait for the latest European consumer inflation data. It rose to a high of 1.0851, which was the highest level since April 14th. This price is slightly above this week’s low of 1.0760.

EU Inflation Data Ahead

The EUR/USD pair tilted upwards after the positive Eurozone industrial production data. According to Eurostat, production rose from -0.7% in January to 0.7% in February. This increase led to a year-on-year increase of 2.0%. However, Eurostat warned that production will ease in the coming months because of the ongoing crisis in Ukraine.

Eurostat will publish the latest consumer inflation data on Thursday. Based on the preliminary numbers that were released recently, analysts expect that the headline CPI rose from 5.9% to 7.5% on a year-on-year basis. Excluding the volatile food and energy prices, analysts expect that the core CPI rose from 2.7% to 3.0%.

Economists expect that inflation will keep rising in the coming months as the cost of energy rises. The EU is contemplating putting an embargo on Russian oil while Germany has resisted banning natural gas. Still, an informal embargo is expected to happen soon since the EU has resisted paying for the country’s gas in ruble.

The EUR/USD pair will react to the latest economic data from the US. The Philadelphia Fed will publish the latest manufacturing index. With the cost of doing business rising, analysts expect that the index fell from 27.4 to 21.0. The Bureau of Labor Statistics will release last week’s initial and continuing jobless claims numbers.

The key mover for the pair will be speeches by Jerome Powell and Christine Lagarde. Powell will likely insist that higher rates and quantitative tightening will be needed to slow the rising inflation. Lagarde will also express caution.

EUR/USD Forecast

After days of declines, there are signs that the pair has bottomed. It is trading at 1.0850, which is slightly above this week’s low of 1.0757. It has also crossed the 25-day and 50-day moving averages while the MACD has crossed the neutral level. Other oscillators like the Chaikin and the Relative Strength Index (RSI) have also pointed upwards.

Therefore, there is a likelihood that the pair will keep rising as investors target the key resistance level at 1.1000. A drop below the support at 1.0800 will invalidate this view.