Ethereum Medium-term Trend: Bullish
Supply zones: $600, $650, $700
Demand zones: $450, $400, $350
Ethereum is resuming its bullish trend in a medium-term outlook. A bounce from the trendline happened as analyzed yesterday, after the bears pushed its price down to $471.97, in the demand area. This area is also the lower band of the Bollinger bands. The formation of a large bullish engulfing candle from this demand area broke the $500.00 critical zone.
The $526.44 mark was the supply area the bulls managed to get to. This area happens to be the upper band of the Bollinger bands. Rejection to an upward price movement is seen in this area. The bears subsequently set in and pushed ETH down to a retest of the $500.00 critical zone. From there the price shot up dye to bullish momentum. Today the price opened at $516.59, compared to yesterday’s opening at $475.15. This implies more buyer presence.
Ethereum short-term Trend: Ranging
Ethereum is again ranging in the short-term outlook. Although the bears broke the lower demand area of yesterday’s range, they failed to maintain momentum. The bulls gradually increased theirs and took the price from $460.00, in the demand area, to $524.00, in the supply area.
The cryptocurrency is now trading between $524.00 of the upper supply area and $490.00 of the lower demand area of the range. Traders should exercise patience in trading within the range with a good scalping strategy or wait for a breakout to the upside for a long position or a breakdown from the lower range for a short position.
Read more at: CryptoGlobe