Crypto Update: Ethereum Hits Two-Week Low at $430 as Sellers Take Control
The weakness in altcoins continued in earnest today, and after a two-faced period that was defined strength in Bitcoin, the major coins are falling in a concerted fashion. BTC is still among the relatively stronger coins, despite plunging below $8000 yet again, as the top altcoins are mostly down by 5-10%, while Bitcoin is only in the red by 2% compared to yesterday’s price levels.
From a technical standpoint, today’s move in altcoins could be a start of a larger scale decline as several key support levels and short-term trendlines have been broken, and the recent period of low trading activity could end in a momentum move in the coming days. Our trend model remains negative with regards to most of the top digital currencies, and as the relatively strong Bitcoin is also just neutral, traders should still be cautious with new positions.
ETH/USD, 4-Hour Chart Analysis
Ethereum broke below the $450 level and the weak short-term advancing trendline as expected, and now a test of the $400-$420 zone looks even more likely. Given the persistent relative weakness of the coin, bulls would need a quick change of behavior from ETH to avoid another leg lower in the larger scale downtrend.
For now, the coin remains on a short-term sell signal, even as the long-term setup is better than in the case of most of the majors. Further support below the primary zone is found at $380 and $360, while resistance is ahead at $475, $500, and between $555 and $575.
Bitcoin Holding Up Well In The Bearish Tide
BTC/USD, 4-Hour Chart Analysis
Bitcoin is trading just below $8000 after the segment-wide selloff, and a test of the key $7650-$7800 zone is possible in the coming days, despite the relative strength of the coin. Traders shouldn’t enter positions here until signs of bullish momentum, as altcoins could pull BTC lower, especially in the case of strong momentum move below the June lows.
The short-term bullish consolidation pattern is intact, for now, and the coin is on a neutral trend signal. Further strong support is found at $7350 and $7000, while resistance is ahead near $8400 and $8700.
LTC/USD, 4-Hour Chart Analysis
The bearish leaders of the recent months continue to be in negative short- and long-term setups, with Litecoin being among the weakest coins. The coin broke below a weak advancing trendline, similarly to Ethereum, and a test of the key $75 support level seems imminent, and a clear break below that would be a negative sign for the whole segment. Below that zone, the next main support level is near $64.5, while resistance is now ahead at $85, between $90 and $93, and near $100.
XRP/USDT, 4-Hour Chart Analysis
Ripple also failed to show strength amid the broad selloff, and the coin has been drifting closer to the key long-term support zone near $0.42 that we have been monitoring since June. The coin is in a precarious long-term setup and the coming week could be crucial to avoid a sell signal. A quick recovery above the $0.45 level would be a bullish sign, but the short-term picture is clearly bearish.
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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.