Ethereum Medium-term Trend: Ranging
Supply zones: $600, $650, $700
Demand zones: $450, $400, $350
Ethereum goes into consolidation in the medium-term outlook. The bulls had a successful run from the demand area at $460.01 with price peaked at $526.44 in the supply area mainly due to the SEC announcment that Ethereum was not a security due to its high decentralization. Bearish pressure forced price to $483.02 in the demand area. From this point, the cryptocurrency enters into a ranging scenario.
The stochastic oscillator is in the overbought region at 25 percent. Its signals point up. This implies upward momentum. We are likely to see upward movement in price due to the bulls’ pressure in the medium-term. A break at $500.00 critical supply zone with the candle closed above it must occur before the retest of $526.40 in the upper price range can take place.
Ethereum short-term Trend: Ranging
Ethereum continues ranging in the short-term outlook. The cryptocurrency is trading between $503.00 in the upper supply area and $487.00 in the lower demand area. $502.00 in the supply area was the beginning of the bearish momentum that was terminated at $487.00 in the demand area. Traders need to be patience in trading the range and wait for a breakout to the upside for a long position or a breakdown from the lower range for a short position.
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