Ethereum Price Medium-term Trend: Bearish
Supply zones: $400, $450, $500
Demand zones: $150, $100, $50
ETH is in a bearish trend in its medium-term outlook. The bulls had a minor pullback on 26th October and pushed the price up to $210.50 in the supply area from 203.40 in the demand area. Rejection of further upward movement occurred as momentum was lost and the bears staged a comeback. ETHUSD dropped to $203.06 in the demand area on 27th October due to the bears’ pressure.
The 4-hour opening candle at $205.01 was a bearish spinning top an indication of a reversal. The price is below the 50-EMA and above the 10-EMA. The stochastic oscillator is at 69% and its signal is at critical point of reversal that favours the bears.
The bearish pennant pattern is seen formed by ETHUSD. It suggests that a break below the lower line is imminent as the price moves closer to the tip of the triangle. With increased bearish momentum in the medium-term, 195.00 in the demand area may be retested by the bears.
Ethereum Price Short-term Trend: Ranging
ETH is in a range-bound market in its short-term outlook. The bear pressure from $205.77 in the supply area after the formation of an inverted hammer was lost. This led to a drop in ETHUSD price to $203.88 in the demand area late yesterday. Today’s bullish 1-hour opening candle at $204.34 sustained the bullish momentum with ETHUSD up at $205.61 in the supply area earlier today.
The price is above the two EMAs with the stochastic oscillator at 70% and its signal pointing up – an indication of upward momentum.
ETH is in consolidation and trading between $207.00 in the upper supply area and at $203.00 in the lower demand area of the range. A breakout at the upper supply area or breakdown at the lower area may occur hence patience is required to allow this to happen before a position is taken.
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