Crypto Update: Ethereum Plunges to 14-Month Low as Altcoin Rout Continues
Yesterday’s warning signs proved correct yet again, as several major altcoins dropped below their August lows, leading another leg lower in the ongoing bear market in the cryptocurrency segment. Ethereum was the most notable laggard, losing double digits and breaking below the key $180 level for the first time since July, 2017.
Bitcoin held up well once again, and it is still hovering around the $6275 level that has been at the center of attention for almost a week now. The strong divergence between BTC and the rest of the market continued, with the market share of the largest coin breaching the 58% level, as altcoins crashed across the board.
XMR/USDT, 4-Hour Chart Analysis
Although correlations are still sky high, and volatility jumped higher as expected, there are also some positive signs present besides Bitcoin’s stability. Ripple managed to hold above the August low despite its relative weakness, Monero is still well above its respective bear market low, and IOTA, DASH, EOS, and Stellar are also holding up amid the regulatory worries.
That said, all of the majors are still on short-term sell signals in our trend model, and the long-term downtrend s are also clearly intact, so traders shouldn’t enter new positions here.
BTC/USD, 4-Hour Chart Analysis
Bitcoin continued to trade in a narrow range amid the broad selloff, and the coin is still trading very close to $6275, without breaching the low from last week. The lack of downside momentum is a huge plus for crypto bulls here, as the odds of BCT holding the crucial $5850 zone are increasing, even as the test of that support is still likely in the coming weeks.
With that in mind, traders should wait with opening new positions even in the relatively strong coin until a short-term trend change is confirmed. Further, weaker support is fund near $6000, while resistnace is ahead at $6500, $6750, and near $7000.
All Eyes on Ethereum After Breakdown
ETH/USD, 4-Hour Chart Analysis
Despite the huge losses of the recent months and the lack of meaningful counter-trend moves, Ethereum is still in a clear short-term downtrend, without signs of an impending bottom. Selling pressure is apparent, and that points to a likely test of the next main support zone between $155 and $160, with resistance now ahead at $180, $200, and $235. As ETH has been the clear leader in the recent selloff, a reversal could trigger a major segment-wide rally, so the short-term signals will get more and more important in the coming weeks.
XRP/USDT, 4-Hour Chart Analysis
Ripple is little changed compared to yesterday’s prices, as buyers held the coin above the August lows, despite the strong selling in the segment. The coin is still likely to take out the low, but a quick recovery above it could setup a more durable bottom. That said, our trend model is still on sell signals on both time-frames, and traders shouldn’t enter positions here. Resistance is still ahead at $0.30, $0.313, and $0.32, while further support is found at $0.23.
LTC/USD, 4-Hour Chart Analysis
Litecoin confirmed its recent relative weakness and plunged below $50 and the August minimum, hitting a new 12-month low in the process. The coin confirmed the ongoing broad downtrend, and now it is likely headed for a test of the next major support zone near the $44 level. Traders should still stay away from the coin, with key resistance zones now ahead near $51 and $56.
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.