Crypto Update: Ethereum Continues to Lead Short-Term Rally

The bullish short-term trend continues in the cryptocurrency segment, even though the major failed to hit new highs despite the recent rally attempts. The technical setup is still stable with regards to the top coins, with no major support or resistance breaks so far this year.

IOTA/USD, 4-Hour Chart Analysis

The leaders of the move, Ethereum, IOTA, and to a lesser extent Litecoin continue to perform relatively well compared to their peers, and Ethereum took back the second position in the list of the most valuable coin from the slightly lagging Ripple.

As Bitcoin is among the weaker majors, the total value of the market has been little changed in recent days, but volatility is low, and the stable market conditions together with the leadership of Ethereum suggest that the counter-trend rally could still continue even though the long-term picture remains bearish for the segment.

The coming days could be crucial for the fate of the short-term rally, but for now, our trend model remains bullish, short-term in case of the majority of the top coins, so traders could still enter new positions, with a focus on the leading coins and with strict risk management strategies.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is still stuck well below the $4000-$4050 resistance zone, and the coin continues to lag the leaders even as it’s trading in safe distance of the key $3600 support level. Our trend model is on a short-term buy signal, while being on a clear long-term sell signal, and a move towards the $4450 level could still be ahead in the coming weeks. Further resistance is ahead between $5000 and $5050, while support below $3600 is found near $3250 and $3000.

ETH/USD, 4-Hour Chart Analysis

Ethereum rallied above the $150 level yesterday, getting close to its Christmas swing high, but for the relatively strong coin got halted by the strong resistance zone in the area. A move above $160 could open up the way for a test of the $180 level, and although the oversold long-term momentum readings are almost cleared, the counter-trend rally is still intact. Support zones are found near $130, $120, and between $95 and $100, while another strong resistance level is ahead at $200

Ripple and Litecoin Still Range Bound

XRP/USDT, 4-Hour Chart Analysis

Ripple’s rally attempt got halted by the resistance zone near $0.3750 yet again, and the coin is now back near the $0.3550 support which has been in focus for weeks now. XRP continues to be relatively weak compared to the leaders of the counter-trend move, and although it is still on a short-term buy signal in pour trend model, the long-term downtrend is in no danger here.

Key long-term resistance is still ahead in the $0.42-$0.46 zone, with further levels at $0.3750 and $0.40, while further support is found near $0.32 and $0.30, and although traders could enter new positions here, the leaders provide better trading opportunities.

LTC/USD, 4-Hour Chart Analysis

Litecoin’s short-term technical position is slightly weaker than earlier on during the counter-trend rally, but the coin is still among the stronger coins from a short-term perspective and we continue to expect a move above the $34.50 resistance level and the prior swing high near $36.

For now, LTC remains on a short-term buy signal, with the support zone in the $30-$30.50 area clearly holding up. Further support is found near $26, while the next key resistance level is ahead near the $38 price level.

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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.

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.