Ethereum Price Medium-term Trend: Bearish
Supply zones: $400, $450, $500
Demand zones: $150, $100, $50
ETH is in a bearish trend in the medium-term outlook. The bearish pressure became weak at $256.02 in the demand area after the formation of a bearish spinning top. The next candle was a bullish spinning top, a further confirmation of the bulls’ return. The bullish engulfing candle pushed the cryptocurrency up to $280.99 in the supply area.
The bulls sustained the momentum with a bullish opening 4-hour candle at $278.39. The price was pushed further up to $291.34 in the supply area. This is within the 50.0 and 61.8 fib level. These are trend reversal zones.
A correction may occur at 50.0 or 61.8 fib level.
Traders should watch as the market play out within the fib levels as the overall outlook is bearish with $160.00 in the demand area as the bears’ next target.
Ethereum Price Short-term Trend: Bearish
ETH continues in the bearish trend in the short-term outlook.
The opening 1-hour candle was bullish at $279.39 and with bullish momentum increased, the cryptocurrency went up to $291.34 in the supply area.
Exhaustion of the bullish momentum is seen with wicks in the candles at $286.00 which implies the bears’ gradual return, coupled with the bearish engulfing candle formed at this point. Moreover, the arc or cup formation suggests that a downward journey in price may occur in the short-term.
The stochastic oscillator is in the overbought region at 76 % and its signal points down which implies downward movement in the price of the cryptocurrency.
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