ETHUSD Medium-term Trend: Bearish
Resistance: $750, $700, $650
Support: $450, $500, $550
Ethereum price yesterday was seriously in a downtrend. A trend is known when a trend line is drawn across and it overlaps two or more price bars on the chart. Yesterday the price nosedived from $934.48 to $888.79 and it is presently at $582.22. The market retraced from the low at a price of $637 to $750 and fell back the lower lows of $571 to continue its downtrend. The 50-day moving average and 20-day moving average had a bearish crossover. You cannot take any long trade until the price stabilizes at the support levels of the downtrend.
ETHUSD Short-term trend: Bullish
Yesterday,the short term trend was bearish and I said that long trades should be taken if the price stabilizes at the demand levels of the market. But price today has gone beyond those levels and it is in the range of $600. The 50-day moving average and 20-day moving average indicated that the trend was bullish whereas the RSI period 14 is below 60. No trades should be taken for now because the support levels have been broken. Trading until a trend is established further is risky.