Ethereum Medium-term Trend: Bullish
Supply zones: $585, $580, $575
Demand zones: $555, $560, $565
Ethereum started the month on a bullish note. This was a continuation of the bullish uptrend that started on May 28 when the pair was in the demand zone of $500.00. Since then, its price kept forming higher highs and higher lows, that are most common in bullish markets.
The price of the asset rose to the $589.26 supply area after opening the day at $571.84. This was a result of bullish pressure. The bears’ moves, at the time of writing, pushed the price down to the $570.18 demand area above the 50-day EMA.
A double bottom pattern is seen in this demand area. This is a reversal sign that could represent the end of the bearish pressure. Ethereum’s price is above the 50-Day EMA which implies buyer pressure. The stochastic oscillator was rejected at 42 percent and its signal currently points down, hinting at downward momentum. It may likely be further as buyers intensify their pressure on the market.
ETHUSD Short-term Trend: Bullish
The short-term outlook of Ethereum is ranging. The cryptocurrency is trading within the upper supply area of $590.00 and lower demand area of $565.00. The upper and lower Bollinger bands act as resistance and support within the range.
The bears’ pressure from the $585 supply area is gradually fading away, when price was pushed down to the demand area of $570.00. Further downward rejection at this area was seen, as the bulls came back and pushed Ethereum back up to the supply area of $589.00. As it consolidates, traders should exercise patience and allow a breakout to the north or a breakdown to the south before trading.
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