Ethereum Medium-term Trend: Bearish
Supply zones: $550, $600, $650
Demand zones: $400, $350, $300
Ethereum continues in a bearish trend in the medium-term outlook. The bears' strong pressure kept pushing price down south breaking the $450.00 bears target in the demand area of last week analysis. The bulls pulled back to $480.00 in the supply area. The formation of the double top a reversal pattern, at this supply area, brought the bears back.
The cryptoasset is in a downward channel and price is at the upper line. Each touch on the upper line resulted in a bounce. This implies we may witness a bounce to the downside. Price is currently below the 50 EMA and on the 10-day EMA which indicates further bears pressure.
The stochastic oscillator is in the overbought region at 74 percent and it signals points down. This suggests further downward momentum in price of the cryptocurrency as the bears' pressure increases.
Ethereum short-term Trend: Ranging
Ethereum is still ranging in the short-term outlook. The bears were able to push price down to $425 in the demand area. A double bottom formation is seen within the range and this brought buyers back. 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 flow, either the uptrend after the breakout or the downtrend after the breakdown.
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