Ethereum Price Medium-term Trend: Bearish
Supply zones: $400, $450, $500
Demand zones: $150, $100, $50
ETH remains in a bearish trend in its medium-term outlook. The bears had a nice ride to the demand area at $195.00 – as predicted in yesterday’s analysis. After breaking out from the bearish pennant with a long-tailed bearish candle, increased bearish momentum led to a lower low at $195.10. The bulls gradually staged a comeback with ETHUSD closing as a bullish hammer at $196.50. The bullish 4-hour opening candle at $196.90 sustained the momentum with ETHUSD up at $198.00 in the supply area earlier today.
The bulls’ efforts still have the price within the 23.6 fib level, a trend continuation zone, which is a pullback. This is to validate the downtrend continuation, and also serve as a market correction.
Price is below the two EMAs which suggest bearish pressure and the stochastic oscillator is in the oversold region at 17% and it signal yet undefined.
The bears may stage a comeback at 23.6 or 38.2 fib levels and drop ETHUSD to $190.00 in the demand area in the medium-term.
Ethereum Price Short-term Trend: Bearish
ETH is in a bearish trend in its short-term outlook. The strong bearish pressure broke $203.00 in the lower demand area of yesterday’s range and pushed the price further down to $195.16 in the demand area but closes with a bullish engulfing candle at $196.07 an indication of the bulls return. ETHUSD was up at $198.68 earlier today.
The current pullback may push ETHUSD to the critical supply area as shown in the chart before the bears possibly stage a strong comeback.
The price is above the 10-EMA but below 50-EMA an indication that the bears’ are still within the market. The stochastic oscillator is in the overbought region at 80% and its signal pointing up – an indication of bullish retracement necessary for the market correction before downtrend continuation.
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