Crypto Update: ETH Edges Higher As Market Remains Frozen

The cryptocurrency segment saw very little action today, with none of the majors making significant progress despite the stability across the board. The low volatility drift means that the key support levels that have been in focus all week are still holding up and while the selling pressure is still apparent in the market, bulls can still hope for another leg higher in the counter-trend move that started in late-October.

ETH had the most promising session among the top coins, briefly trading higher by almost 2%, but the coin gave back most of its gains by the end of the day. That said, ETH remains in a relatively favorable technical position, compared to the likes of XRP and BTC, but there is still no sign of the broad strength that would be needed for a more sustained rally. Traders should remain defensive here, as the odds of another sell-off towards the prior lows are high.

BTC/USD, 4-Hour Chart Analysis

BTC traded in a very narrow range throughout the session, as trading activity collapsed and the $8,750 price level remained in focus. The coin is still above, but also dangerously close to the upper boundary of its prior trading range, and a move back into that range could trigger a volatile dip in the most valuable coin’s market.

The coin is still on sell signals on both time-frames in our trend model, with support zones found near $8,650, $8,400, and $8,200, and with resistance ahead near $9,200 and $10,000.

ETH/USD, 4-Hour Chart Analysis

ETH is trading above the key $185 level thanks to its recent relative stability, and despite today’s failed rally attempt, it is still the best hope for bulls to lead a broader move higher. Volatility continues to decline in the coin’s market, while the trading range that developed following the October spike remains intact, and the $200 and $180 levels could be decisive concerning the direction of the next major swing.

Our trend model is still on sell signals on both time-frames, with further support zones now found near $160, $145, and $130, and with resistance zones ahead near $200 and $230.

XRP Remains Flat As LTC Edges Lower Towards $60

XRP/USD, 4-Hour Chart Analysis

XRP traded in a very narrow range just above the $0.27 price level throughout today’s session, with neither the $0.26 support nor the $0.28 resistance level being in real danger. The coin continues to hover below its prior consolidation range, while showing relative weakness, which makes a move towards the prior bear market low likely in the coming weeks.

XRP is still on sell signals on both time-frames in our trend model, with support zones found near $0.26, and $0.2475, and with resistance zones ahead near $0.28, $0.30, and $0.32.

LTC/USD, 4-Hour Chart Analysis

LTC has shown relative weakness in the quiet environment, and it failed to regain its strength that propelled its rally attempts over the past week or so. The coin is now risking a move below $60, which could lead to a wave of selling and a quick test of the key $56 support, especially in light of LTC’s still apparent long-term technical weakness.

LTC remains on sell signals on both time-frames in our trend model, with further resistance zones found near $56, $51, and $44 and with the next major resistance zone ahead near $75.

Featured image from Shutterstock

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.

Author:
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.