ETHUSD Long-term Trend – Bearish
Distribution territories: $600, $650, $700.
Accumulation territories: $250, $200, $150.
Ethereum has lost a significant amount of value against the US dollar in the last few months. The cryptocurrency further saw its price decline last week. On August 7, the bears were bold enough to force the market further down, as ETH saw the accumulation territory of $400 be broken southbound.
The bears have finally pushed the market past its last low price line that was obtained around the accumulation territory of $345 on April 1. ETH has been actively trending southwards far below the two SMAs. The 14-day SMA has moved past the accumulation territory of $400 and is located below the 50-day SMA.
Stochastic Oscillators have deeply dipped into the oversold zone, and yet are seemingly consolidating their positions more in favor of a southward direction. This means the current bearish trend isn’t over yet. Until a sudden, strong upward move convincingly helps ETH surge, the cryptocurrency may be under selling pressure for a few days or weeks.
The intersection of the 50-day SMA from below by the 14-day SMA will have to serve as a strong signal for the bulls’ reentry into the market. Investors may consider buying at a lower price around $250. Traders may watch out for a decent bearish reversal to get a good long entry.
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