Ethereum Medium-term Trend: Bearish
Supply zones: $650, $750, $800
Demand zones: $550, $500, $450
Ethereum is bearish in the medium-term outlook. The bears successfully broke the lower demand area of last week range and went on a nice ride to the south. They were able to break critical demand zones at $500.00 and $550.00.
The 10-day EMA acted as a strong resistance against the upward move. The stochastic oscillator is at 55 percent and it signals points upwards. Which means minor uptrend may occur which should be seen as a market correction for downtrend continuation, otherwise known as a deadcat bounce. Daily candle opened bearish and below the 10-EMA which implies sellers presence.
Ethereum Short-term Trend: Ranging
Ethereum is ranging in the short-term outlook. The bearish trend that occured over the weekend broke the $598.00 at lower demand area and went further down to the $500.00. The Bollinger band is closing up the showing sigh of consolidation. Ethereum is trading between the upper supply area at $540.00 and the lower demand area at $500.00. During consolidation, patience is required, this will help traders flow with either the uptrend after the breakout or the downtrend after the breakdown.
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