Ethereum Price Analysis - June 7

Azeez Mustapha
  • Ethereum continues to consolidate both the medium and short-term outlook
  • Patience should be exercised to allow a breakout or breakdown from the range before commitment is made

Ethereum, ETHUSD, Cryptocurrencies, chart

Ethereum Medium-term Trend: Ranging

Supply zones: $650, $750, $800

Demand zones: $550, $500, $450

The ranging scenario continues in Ethereum in the medium-term outlook. The bulls successfully took the price to the supply area at $615.00 of yesterday's range, while the bears returned the pair to the demand area at $607.45. The battle for control continues between the bulls and the bears. The price is below the 12-day EMA but lies above the 50-day EMA. This suggests that the bear area is exercising strong pressure on the price and, if the 50-day EMA is broken, we may see the price further journey down. The stochastic oscillator has crossed the overbought region and its signal is pointing down. This implies a downward momentum. The daily opening price was $606.58 against yesterday's opening of $609.77. This indicates that more sellers in the market will push the price further South. The structure to the left of the range may play out well. If this happens, Ethereum may be retesting the lower demand area of the range one more time in the medium-term.

Ethereum Short-term Trend: Ranging

Ethereum, ETHUSD, Cryptocurrencies, chart

Ethereum continues to the range in the short-term outlook. The asset is trading within the upper supply area at $615.00 and lower demand area at $593.00. The stochastic oscillator witnessed a rejection to the upward momentum and this implies that the downward momentum is favoured. This may take the price back to the lower demand range that the bulls took it from. A breakout to the upside or breakdown to the downside is bound to occur shortly, hence traders should be patient and allow this to happen in order to smooth the ride with the trend.

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