Crypto Update: Ethereum Flirts With $700 as Choppy Consolidation Continues
Although the steep correction that dragged the major cryptocurrencies lower last week quickly came to a halt, and most of the coins pushed back towards their rally highs, the market is yet to break out to a meaningful new swing high. Out of the coins that provided a short-term buy signal after the correction, NEO was the only one that made a significant move, while Ethereum Classic tested its prior high without a breakout.
Ethereum and Bitcoin drifted sideways in a choppy fashion after the strong initial bounce, while EOS which has been in the spotlight lately continued to shine, despite the overbought readings before entering a correction today.
BTC/USD, 4-Hour Chart Analysis
Bitcoin’s technical setup is little changed after the weekend, as the coin remained inside the range of last week’s pullback, forming a triangle consolidation pattern. The currency is trading near the key $9000-$9200 support/resistance zone today, with low volumes contributing to the choppy trading conditions. The underlying bullish trend is intact and a continuation of the rally is still likely, with targets ahead at $10,000 and $10,500, and support found $8400 with a short-term level at $8700.
ETH/USD, 4-Hour Chart Analysis
Ethereum is just shy of the $700 level and the recent rally high near $715, still being among the relatively strong coins. While the lack of bullish momentum is a slightly negative sing here, which could lead to another pullback, the rising trend is intact, and we expect the rally to continue in the coming weeks, with a likely test of the $735, $780, and $845 levels.
TRON Moves into the TOP 10 as Altcoins Mixed
ETC/USD, 4-Hour Chart Analysis
As correlations continue to trend lower in the segment, the largest digital currencies are diverging substantially today, with a slight bearish bias across the board. Ethereum Classic is in a promising short-term setup, testing the crucial $23 level, still being on a buy signal in our trend model. A breakout, although not guaranteed could set up a quick move to the $27.50-$30 range, while support is found near $20 and $18.
TRON and EOS have been on the move again throughout the weekend, and the latter overtook the NEO and IOTA to enter the TOP 10 currencies regarding total market capitalization. While both coins are stretched form a short-term perspective, their strength, and new highs confirm the broad bullish trend in the segment.
Cardano and Stellar also hit new rally highs before today’s pullback, while the rest of the majors are trading within their consolidation patterns, as volatility remains low, and the total value of the market is relatively stable near $430 billion.
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.