Long-Term Cryptocurrency Analysis: Ethereum Spikes to $470 with New Highs Across the Board

Everyone who called Bitcoin and cryptocurrencies a bubble has been proven wrong, or are at least suffering losses, so far, as the segment didn’t look back this and added $45 billion in capitalization. The rally was mostly fueled by altcoins this time around, with several of the majors hitting sizable new record highs. That said, week Bitcoin also held up well near its recent high, and it is still trending higher this weekend, defying the stretched long-term picture.

Ethereum’s break-out to new highs was the most important move of the week, with the second largest coin leaving behind a multi-month consolidation formation, and gained more than 30% during the period. The token still has room to rally according to the long-term momentum indicators, and a test of the $500 level seems very likely in the current leg higher, with further major long-term targets near $575 and $685.

ETH/USD, Daily Chart Analysis

Dash has been the other star of the week, and the coin took over Litecoin in the list of the most valuable coins while completing its range extension move. The currency hit our final target at $615, and now we advise long-term investors to only hold their core positions, as Dash joined Bitcoin and IOTA in being severely overbought. That said, further upside is possible in the coin’s market, but correction risk is now high, and the risk/reward ratio is not favorable anymore. Support levels are found near $540, $500, $470, and $411.

DASH/USD, Daily Chart Analysis

The rest of the altcoins are also mostly in the latter stages of the cycle and investors and traders should start to turn more defensive, as the risks of a correlated correction are rising. Monero and Ethereum Classic are among the more overbought majors, while Ripple, and Litecoin

Bitcoin

BTC/USD, Daily Chart Analysis

BTC is still in a short-term uptrend while the long-term technical picture remains, unchanged with stretched momentum readings, and high correction risk. While the rally could still continue, investors should remain patient and wait for more favorable conditions to add to their holdings. Key support levels are now found at $7700, $7000, and $6700.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin hit yet another target level as it continued to rally this week, and it’s now trading near the $85vlvel after leaving behind the $82.50 resistance. The coin is now on a neutral long-term signal, and as although we expect more gains from the Digital Silver, the current setup is not optimal for opening new investment positions. Major support levels are found at $75 and while the all-time highs just below $100 are ahead as resistance.

Ripple

XRP/USDT, Daily Chart Analysis

Ripple has been edging higher in the bullish environment, but it still failed to show strong momentum, with the key $0.26 level still ahead as a major obstacle. The long-term momentum is still close to neutral, and the prospects of the coin are encouraging, but the recent relative weakness is slightly worrying.  Support is still around $0.2250, just below $0.20, and at $0.18, while further resistance above $0.26 is found at $0.30.

Ethereum Classic

ETC/USD, Daily Chart Analysis

Ethereum Classic is breaking out of a choppy consolidation zone that formed near $18, and it got very close to the all-time high at $23 today. While the long-term picture is now stretched, a rally to at least marginal new highs is likely, but investors should use the strength to exit some of their positions after the strong rally, and wait for the next correction to add to their positions.

Monero

XMR/USD, Daily Chart Analysis

Monero is trading at fresh all-time highs after a successful move above $150, and although the long-term MACD is getting overbought, there is still room for further gains. Major targets are ahead at $180 and near $200, with support levels at $160, $150, and $125.

IOTA

IOTA/USD, Daily Chart Analysis

IOTA entered a volatile correction after reaching overbought readings, and spiked below the $0.70 level of the top just below $1. While the coin is still stretched regarding the daily momentum, a rally to test the record high at $1.1 is possible, but investors should wait for at least neutral readings to add to their holdings after the stellar rally. Key support levels are found at $0.75, $0.64, and near $0.56.

How to Use These Charts?

As we stressed in our article on Bitcoin: “…not all strategies are binary (either holding an asset or not).There are many long- and short-term investment and trading strategies that can be successful in a roaring bull market like the one that the crypto-coin segment is experiencing, but mixing the time-frames and mixing trading and investing (see our article on the topic) could lead to troubles.”

Here is a reminder of some of the possible strategies once again:

  • Buy and hold, without caring about day-to-day (or even month-month) fluctuations
  • Buy and hold a core position and add on the major dips; a very powerful strategy
  • Buy a certain amount every week or month, and even-out your entry price, without the hassle of timing the market
  • Try to catch major turning points to reduce and “re-boost” your position
  • Trade short-term movements with stop-losses, targets, and strict risk management (this is trading not investing)”

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.

Author:
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.

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