The major coins are all in the red today, with Ethereum and small cap coins leading the way lower, and Bitcoin and Litecoin outperforming the market considerably. To put the current move into perspective, Ethereum and Bitcoin first reached the current price at the end of May, and the ETH token is still trading 20 times higher than its value in January.
With the current moves in the Ethereum ecosystem looking panicky, small long positions could already be opened, but we advise traders to still wait with significant new positions until the short-term trend changes. With the long-term picture now looking neutral, let’s see how the major short-term charts stand right now.
BTC/USD, Daily Chart Analysis
Bitcoin briefly fell below the $2300 level that marks the late-June low, but recovered above that level quickly, as the coin remained relatively strong during the deep sell-off. While BTC is not out of the woods yet, and further corrective action is expected, the $2150 level is now likely to hold, as a long-term base is being established.
BTC/USD, 4-Hour Chart Analysis
ETH/USD, 4-Hour Chart Analysis
Ethereum got smashed below $200 in what might have been the last panic move of the long-term correction that started almost a month ago. ETH is still stuck in the declining short-term trend but, at least a bounce to the $235 or the $250 level is likely now, and the long-term bottom could also be in given the improvement in the long-term setup.
LTC/USD, 4-Hour Chart Analysis
Litecoin remained in a bullish short-term correction pattern throughout yesterday’s sell-off, and it is still the strongest major concerning the technical position, together with Dash. The currency could be ready to test the range projection target near $58-$60, that could mark the beginning of a more protracted correction after the strong recent break-out.
DASH/USD, 4-Hour Chart Analysis
Dash moved below short-term support during the overnight sell-off, but still remains technically strong, holding up above the prior long-term high near $150. We still expect a move above the current high at $220 to reach the long-term Fibonacci target just above the $250 level.
XRP/USD, 4-Hour Chart Analysis
Ripple spiked below the long-term consolidation range overnight and re-entered it today in early trading as the major coins rebounded, leaving the long-term setup still unchanged. Short-term traders are still advised to wait for a move above the declining trendline, while investors could add to their positions on the dips.
ETC/USD, 4-Hour Chart Analysis
ETC moved below the long-term support at $14.50 as well, before moving back up together with the broader market. The coins is still showing short-term weakness and that suggests caution for traders, while investors could still add to their positions here, as the correction runs its course.
XMR/USD, Daily Chart Analysis
The long-term chart of Monero shows strong support at $37, providing a good entry point to investors, with a base formation developing between the $32 and $37 levels. That said, the declining short-term trend remains intact, and the primary resistance near $46 will likely hold back a rally, as more corrective action could be needed before a sustained move higher.
XMR/USD, 4-Hour Chart Analysis
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