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Cryptocurrency Update: Ethereum Leads Rebound

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Cryptocurrency Update: Ethereum Leads Rebound

Introduction

This article was posted on Tuesday, 19:36, UTC.

Bitcoin

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BTC led the decline at the end of last week, and the rebound also started when Bitcoin bounced off the $1875 support. Since then, the correlation between the coins broke down significantly and BTC has been drifting higher, hitting $2300 before today’s US session. While the rally was strong, caution is still the name of the game here, as the short-term technical picture still is still neutral at best. Another re-test of the $2000 level remains the most likely scenario, with the trend line of the recent rally being in danger.

Ethereum

ETH emerged as the leader of the rebound, jumping above the $200 level and to a new high against BTC, almost doubling in value from the Saturday bottom. Ethereum’s market capitalization reached 50% of Bitcoin’s value, as it remains the cryptocurrency with the quickest expansion rate in Dollar terms.

Ripple

Ripple has been lagging the other majors throughout the rebound, and it fell almost 10% against BTC today, XRP is below the short-term resistance level at $0.2275 and it might be ready to test the long-term trendline near 0.17. A rally above 0.25 would open up the road for a new advance.

Litecoin

Litecoin’s technical position was the least affected by the deep correction, as it remained in the broad consolidation that it has been trading since topping out 3 weeks ago except a short spike lower. The forming base between $20 and $23 is serving as primary support, with strong resistance at $26.50.  The primary support might be in focus in the coming days, while a rally above $27 would be strongly bullish development.

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Mate Cser

Mate Cser

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.

Comments
  • user

    AUTHOR embersburnbrightly

    Posted on 12:40 am May 31, 2017.

    I suspect Bitcoin will indeed struggle for a while to reach any further massive gains, with some short-term further corrections possible. It seems a lot of the money in the cryptocurrency market is being drawn out currently in support of Ethereum. I think it is just a matter of time before Litecoin breaks through to begin another rally, given that Litecoin can be bought at a good rate currently and the coin offers faster and cheaper transactions than Bitcoin. I feel it has been off the radar a bit as Bitcoin hit some key psychological numbers; but that Litecoin’s time to shine is coming. Ripple may indeed come down a bit further in the short term, but it may not be a bad idea to use any further low rates to stock up a bit on Ripple and Litecoin, prior to the almost certain rebound and subsequent rally from these two altcoins. I used the same approach with Ethereum, buying extra coins when the price dropped for a bit. Investing in those extra ether coins is certainly paying off handsomely now — with a 154% gain (and growing) in about 1 month. I must also give acknowledgement and thanks to Hacked.com for helping to steer me in that direction. I am new to this but learning quickly, in no small part due to the information provided here. Thank you!

    • user

      AUTHOR embersburnbrightly

      Posted on 4:04 am June 1, 2017.

      As I type this, slightly more than 24 hours following my initial comment above, Litecoin is up 11% and Ripple is up 36%. Ethereum continues to hold steady. The muse Kenny Rogers once sang, “You gotta know when to hold ’em; know when to fold ’em.” Very happy right now to have held onto my Ethereum, Litecoin, and Ripple!

      (Might also be the first time that Kenny Rogers was referred to as a muse??)

      • user

        AUTHOR Mate Cser

        Posted on 5:20 am June 1, 2017.

        Absolutely, in this market selling your core positions in a correction might make you regret it quickly. The fundamentals remain rock solid, but as a trader, especially on leverage, you gotta control risk. These moves, however big the percentages are, didn’t change the overall technical setup.

        • user

          AUTHOR embersburnbrightly

          Posted on 5:49 am June 1, 2017.

          I am finding this site to be a wealth of information; and Ripple is currently up by 52%. Wow. I know it won’t last and that a sell-off for profit is inevitable, but it seems like there is still room for additional growth longer-term with this coin. Thank you for the reply!

  • user

    AUTHOR Gabriel

    Posted on 7:54 am May 31, 2017.

    Thank you for this analysis. Despite the aggressive ups and downs, it is interesting to see that new bases are forming and that long term trends are holding.

  • View Comments (5) ...
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