Crypto Update: ETH Eyeing $200 As Consolidation Continues

The major cryptocurrencies continued their volatile post-surge consolidation today, with most of the top coins still being stuck in their weekend ranges. While the majors haven’t been able to make meaningful technical progress since the initial surge, despite testing their highs over the weekend, they are holding up above key support levels, leaving the possibility of further gains open. BTC has been consolidating near the $9,200 level, holding on to its short-term buy signal, but the rest of the top coins failed to gain momentum.

Given the long-term picture in the segment, we would need further evidence even regarding a short-term trend change before recommending meaningful positions in the top coins. Should new short-term uptrends form in the majors’ markets, even a broader trend change could be triggered, but for now, the bearish long-term setups remain intact, and traders should continue to be defensive.

BTC/USD, 4-Hour Chart Analysis

Despite a secondary rally, BTC failed to hit a new high since its initial surge, and the coin continues to hover around its breakdown level form September, warning of a possible failed spike. That said, the coin remains in a short-term uptrend and on a buy signal, even as the other majors aren’t confirming a trend change, so the coming days will be crucial in deciding the fate of the rally attempt.

The coin is still on a long-term sell signal in our trend model, with support zones now found near $8,650, $8,400 and $8,200, and with further resistance ahead near, $10,000.

ETH/USD, 4-Hour Chart Analysis

ETH managed to climb back above the $180-$185 support/resistance zone following its initial pullback, but it failed to gin traction above that zone, and it remains relatively weak compared to BTC. The coin could still launch a rally attempt towards $200, but in light of its long-term relative weakness, traders should be suspicious of the current counter-trend move, barring a broader rally in the segment.

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

XRP Still Capped by Key Resistance Zone

XRP/USD, 4-Hour Chart Analysis

The previous leader of the counter-trend move in the segment, XRP continues to be stuck near $0.30, despite the several breakout attempts. While a move above that zone could trigger another leg higher in the advance, together with a buy signal, the longer-term remains clearly bearish in the coin’s market, and we still expect the bear market to resume.

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

LTC/USD, 4-Hour Chart Analysis

LTC has been slightly weaker than its closest peers during the post-surge consolidation, but it continues to hold up above the key $56 level, making a short-term trend change possible despite the bearish long-term pressures.  That said, the coin is still likely to remain a bearish leader in the segment, and new lows are likely to follow the counter-trend move.

LTC remains on sell signals on both time-frames in our trend model, with resistance zones now found near $51 and $44 and with the next major resistance zone ahead near $64.

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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.

 

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.