Ethereum Medium-term Trend: Ranging
Supply zones: $650, $750, $800
Demand zones: $550, $500, $450
Ethereum is ranging in the medium-term outlook. The pair has a nice structure as it enters into consolidation between the upper supply area at $615.00 and the lower demand area at $578.00. The structure is a form of head and shoulder pattern. The right shoulder had a bullish move from the $584.70 demand area on June 5th and pushed the price up to the $612.90 supply area. This creates a similar structure we previously had on the left in the range. The stochastic oscillator is at 70% and its signal is pointing down. This implies a downward momentum as the bears will seek to push the price further down until the oscillator gets to the oversold region. The price is on the two EMAs and in the middle of the bollinger band, which means some kind of ranging scenario. Traders should be patient during this consolidation period to allow for a breakout to the upside or breakdown at the downside before placing trades. The use of a good ranging market strategy may be considered.
Ethereum Short-term Trend: Ranging
Ethereum continues to range in the short-term outlook. The bears briefly pushed the price to the demand area at $598.00 while the bulls took it up to the $612.00 supply area. The battle for dominance continues between the bears and bulls in the short-term. Patience is recommended as the asset consolidates. A breakout to the North or a breakdown to the South will occur shortly.
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