Ethereum Medium-term Trend: Bearish
Supply zones: $600, $650, $700
Demand zones: $500, $450, $400
Ethereum continues its bearish trend in the medium-term outlook. Double top formation at this supply area brought the bears back and they drop price at $523.34 in the demand area. A flag is seen formed which is due to the bulls activities. Flags are usually a correction for trend continuation. In this case, the downtrend may likely continue as the bears increase their pressure. The stochastic oscillator is in the overbought region and its signals may point down soon which will justify the downward momentum.
Ethereum Short-term Trend: Ranging
Ethereum is still ranging in the short-term outlook. The bears were able to push price down to $510 in the demand area. A double bottom formation is seen within the range and this brought buyers back. Their pressure seems strong as they took price to $539.00 in the upper supply area of the range. The stochastic oscillator is in the overbought region and its signals point down. This implies downward momentum. As the bears' activities increased in the range price may further go down. During consolidation, patience is required, this will help traders to go with the trend, either the uptrend after the breakout or the downtrend after the breakdown.
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