Crypto Update: ETH Shows Strength As Coins Remain Under Fire

The major cryptocurrencies had a highly volatile and mixed Monday session, with relatively low volumes across the board due to the U.S. bank holiday. The correction that started during the weekend continues to dominate price action in the segment, although Sunday’s strong correlation between the top coins broke down somewhat.

Our trend model remains on short-term sell signals even in the case of the relatively strong ETH, but the long-term outlook is still positive, with the previously dominant long-term trendlines being clearly below the current price levels. While yesterday, we saw early signs of a bullish rotation in the segment, BTC failed to build on its relative strength, hitting a new correction low, which also points to a more durable pullback.

BTC/USD, 4-Hour Chart Analysis

BTC continues to trade below its rising short-term trend channel and the key $10,000 price level. The coin has been under pressure throughout the day, despite the bounce among altcoins and it dipped briefly below $9,500, with volatility remaining fairly low in its market. BTC might be ready to test the $9,200 level, but for now, the new long-term uptrend seems safe, and the coin could be among the first majors to form a swing low.

BTC is on a short-term sell signal while still being on a long-term buy signal in our trend model, with support zones now found near $9,200, $8,600, and $8,400, and with resistance ahead near $10,000, $11,300, and $13,000.

ETH/USD, 4-Hour Chart Analysis

The leader of the past couple of weeks, ETH managed to hold up above its short-term trendline, but without other majors showing strength, it is also likely to continue the first major correction of the freshly formed trend.  The coin is back near the key long-term $260 level, but even as its overbought short-term momentum readings have now been cleared, it faces strong short-term headwinds.

Our trend model is on a short-term sell signal while still being on a long-term buy signal, with major support zones found near $230, and $200, and with resistance zones ahead near $260, $275, $290, and $300.

XRP And LTC Remain Relatively Weak Amid Bounce

XRP/USD, 4-Hour Chart Analysis

XRP continues to trade in the close vicinity of the key long-term $0.28 price level despite ETH’s strong bounce, and while it avoided a new correction low today, it remains in a weak technical position. XRP is the closest to its prior long-term trendline, and it might still reverse its crucial long-term breakout during the current pullback.

Our trend model is on a short-term sell signal while still being on a long-term buy signal with support zones found near $0.28, $0.26, and $0.2475, and with resistance zones ahead near $0.30 $0.32, $0.33, and $0.3550.

LTC/USD, 4-Hour Chart Analysis

LTC has been struggling to join ETH’s bounce despite defending its low from Sunday, and it got stuck near the key long-term support/resistance zone between $72.50 and $75. The coin is showing short-term technical weakness, and since it was among the leaders of the current larger-scale rally, traders should be looking for signs of stability in its market, as it could signal an impending bottom.

LTC is now on a short-term sell signal while still being on a long-term buy signal in our trend model, with support zones now found near $72.5, $64, $56, and $51, and with resistance zones ahead near $75, $85, and $90.

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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.