Crypto Update: Coins Slaughtered as Support Fall, Ethereum Hits 4-Month Low
Altcoins crashed below key support levels during the past 24 hours, while Bitcoin also fell substantially, as strong selling pressure dominated across the board. The technical setup has been bearish in the segment for a while, with sellers clearly being in control, as no meaningful bullish momentum was present.
Yesterday, after a period of range-bound consolidation, Ethereum followed in Ripple’s footsteps, taking out the crucial $400 level and confirming the breakdown with a clear move below the $380 level. The performance of the relatively weak coins, such as Litecoin, Monero, NEO, and Dash continue to weigh heavily on the segment as well, with all of them hitting new cycle lows in their structural bear markets.
LTC/USD, 4-Hour Chart Analysis
Also, no relatively strong leadership emerged during the, with the recently outperforming Ethereum Classic following the market-wide trend, and shedding 15% after its brief break-out. With all of the majors still being on sell signals in our trend model, Bitcoin’s relative stability is the only glimmer of hope, at least on the short-run for crypto bulls, with the largest coin still trading well above its line-in-the-sand $5850 support level.
BTC/USD, 4-Hour Chart Analysis
Bitcoin is still in better technical setup than the majority of the coins, although the short-term trend is clearly declining, and the last weak advancing trendline has also been broken. The segment-wide selloff carried the coin below the $6750 and $6500 levels, and now, $6275 support and even the key $5850 level could be in play even. Traders should still not enter positions here, given the overwhelmingly bearish backdrop, with further resistance levels ahead for the coin at $7000, $7250, and $7350.
Altcoins Deep in the Red as Ripple Continues Crash
ETH/USD, 4-Hour Chart Analysis
Ethereum violated the June low and the $400 support, and quickly made its way towards the April lows near $360, joining the ranks of the altocins in bearish long-term setups. The coin is also still on a short-term sell signal, and a move below $360 would point to a likely test of the $300 level. Barring a quick reversal above $400, traders should still avoid the coin, as the downtrend remains strong. Further resistance is ahead at $420 and $450, while initial support below $360 is found at $335.
XRP/USDT, 4-Hour Chart Analysis
The coin is now very close to the $0.30-$0.32 zone that we pointed out before, and the strong selling pressure in the coin is still apparent. As XRP is now oversold from a short-term perspective, a meaningful counter-trend move is likely near the key long-term zone, but the bearish trend is expected to continue in the coin and the other major altcoins alike.
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Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.