Crypto Update: Ethereum Hits 9-day High as Altcoin Bounce Continues

The cryptocurrency segment continued to show signs of short-term strength so far this weekend with the severely oversold altcoins leading the way higher. Ethereum is still in the epicenter of the moves, with the second largest coin pushing higher towards the $235 resistance level as expected. Despite the ongoing bounce, several coins are stuck in narrow ranges, as correlations broke down in the segment this week, and some of the currencies failed to join the rally.

The advance still only qualifies as a counter-trend move, with all of the majors being in broader declining trends, even though the short-term outlook improved. With that in mind, traders should only enter short-term positions even in the coins on buy signals, until a confirmed trend change in the segment.

ETH/USD, 4-Hour Chart Analysis

Ethereum inched above the Thursday swing high today but the momentum of the weekend move is still week in the quiet environment, and with strong just ahead, the rally will face the first major test. Above $235 another strong zone is ahead at $260, and the declining trendlines are still well above the current price level, and the broader declining trend is not in danger yet. That said, the short-term buy signal is still in place in our trend model, with support levels found at $200 and $180.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is trading a tad above the $6500 level today, still not showing signs of bullish momentum, but remaining stable and well clear of the key $6275 support. Volatility has been very low in the market of the largest coin in the last few days after an extended period of relative strength amid the recent altcoin rout.

Despite the coin’s stability and the short-term buy signal, traders should still not enter full positions here as the long-term setup remains only neutral, and the segment-wide trends are negative. Resistance levels are still ahead near $6750, $7000, and between $7200 and $7300, while further support is found near $6000 and $5850.

Bulls Still Not in Control of the Market

XRP/USDT, 4-Hour Chart Analysis

Besides Bitcoin, Ripple, EOS, IOTA, ETC, and NEO are also stuck in narrow short-term ranges, but all of them in much worse shape form a longer-term perspective. With only Monero showing considerable strength, more coins would need to join the rally for a possible broad trend change in altcoins. IOTA and NEO are still even on short-term sell signals, while the rest of the majors are neutral.

XMR/USDT, 4-Hour Chart Analysis

XMR hit the $120-$125 target zone, confirming its relative strength yet again, and although it is still well below the crucial long-term $150 level, it remains in the best technical setup together with Bitcoin. Despite that, traders should remain cautious with XMR too, until a clear bullish leadership forms in the sector. The short-term buy signal is still in place, with support found at $109 and $100.

LTC/USD, 4-Hour Chart Analysis

Litecoin managed to gain ground in the last couple of days, and although the move halted near the dominant declining trendline, the coin is now neutral from a short-term perspective and a buy signal could be triggered in the coming days. Strong support is found near $56 and $51 while next key resistance zone is at near $64, with a weaker level found at $59.

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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.