Cryptocurrency Analysis: Ethereum Holds Strong amid Broad Correction

The crypto-coin market is very active today, as yesterday’s string of break-outs and pull backs triggered volatility in the majors and the small cap coins as well. Ethereum’s surge reached as high as $400 in early trading, but the decline in Bitcoin “infected” the other coins during the US session. As we noted in our long-term outlook, both BTC and ETH are in overbought territory, and that could mean that a consolidation period or a deeper correction is in the works.

Bitcoin

BTC/USD, 4-Hour Chart Analysis

Bitocoin’s sell-off accelerated after it broke the swing low at $2600 but it bounced off the support level near $2450. Further support is found at $2350 and at $2150, which corresponds with the rising long-term trendline. The short-term trend switched to negative, while the long-term trend is still intact. Investors should be looking for entry points as the price falls, while short-term traders should wait for bullish signs before entering new positions.

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum remains the strongest major short-term, as it is still inside the rising trend channel on the USD pairdespite this afternoon’s dip.  The currency is now trading right at yesterday’s maximum near $350 after a brief spike below short-term support. The $300 level is the initial target for a correction, as it is right at the rising short-term trendline currently. The BTC pair is still in a strong uptrend as the value of ETH is getting closer and closer to BTC’s

ETH/BTC, 4-Hour Chart Analysis

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin experienced a failed break-out attempt along with Monero, yesterday, as it briefly rose above $32, but fell back to the long-term consolidation pattern amid the Bitcoin correction. The long-term picture is unchanged despite today’s volatility with the coin still being in a corrective phase following April’s surge. The short-term trend is currently neutral, with support levels found at $27.50, $26.25. The BTC pair is little changed as it is still stuck in a range between 0.10 and 0.115.

LTC/BTC, 4-Hour Chart Analysis

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple failed to gain relative strength against Bitcoin and it continues to trade in a long-term corrective pattern, although the break below the long-term trendline on the USD chart is a bearish sign.  A sustained below $0.23 would warn of a decline towards $0.20 with further strong support at $0.18. The BTC pair is weak, but the currency is still holding on above the key support between 0.00008 and 0.00009.

XRP/BTC, 4-Hour Chart Analysis

Monero

XMR/USD, 4-Hour Chart Analysis

Monero failed to break-out to new all-time highs uyesterday and fell below the crucial $50 level today, being dragged down by BTC. The short-term trendline has been broken and more consolidation is expected, with a possible re-test of the long-term trendline that is currently found near $42.

Dash

DASH/USD, 4-Hour Chart Analysis

The Dash/USD pair is still looking bullish despite today’s volatile session, as the coin rose as far as $200 after breaking out above the $150 level and hitting our targets for the move. If the broad correction continues, the coin has further support near 140, and at the prior correction-low near 130.

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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.