Technical Analysis: Ethereum Leads Altcoin Rebound as Bitcoin Remains Strong
Apart from a brief but steep dip in BTC the most valuable coin continued to rise, getting close to the $4900 mark, only a few percent of its all-time highs and the $5000 level. With news about a crackdown on Bitcoin-related activities coming out from Russia earlier on, the segment experienced a short selling panic. The coin is still the leader regarding relative strength, as the Segwit-rally continued to restructure the market towards BTC. With no major technical resistance left until $5000, we expect at least a test of that zone during the current leg higher. Support levels are now found at $4650, $4400, and near $4150.
BTC/USD, 4-Hour Chart Analysis
Altcoins got under severe pressure yesterday, but that eased considerably today, and the most important coins rebounded strongly off their lows, with the exception of Ripple that has been outperforming the market recently. XRP is in a short-term correction after its surge, while Ethereum has been one of the strongest altcoins during today’s recovery. The previously leading Dash, Monero, and Litecoin are still slightly lagging the broader market, with Ethereum Classic being the weakest major. Let’s see how the short-term charts look after two busy days this week.
ETH/USD, 4-Hour Chart Analysis
Ethereum held up above the $285 support once again and it si showing considerable relative strength today, climbing back above the $300 level. As the coin is looking bullish long-term as well, we still expect a rally above the $330 resistance soon, and a possible test of the $380 level as well, with further support found at $250.
LTC/USD, 4-Hour Chart Analysis
Litecoin recovered well after yesterday’s sell-off and it remains one the least volatile coins despite being relatively weak since the China-crash. The $51 and $56 levels are likely to remain in focus as range trading is still dominant, but the long-term picture is bullish and a rally towards the $64 resistance will likely be the next major move in the coming weeks.
DASH/USD, 4-Hour Chart Analysis
Dash is trading below the key $300 level as the grinding correction continues in the coin. While the long-term picture is encouraging, we still expect sideways trading to continue, similarly to LTC before a significant move higher. That said, a major dip is unlikely in the currency. Primary support below $300 is at $265, while resistance is ahead at $330 and $360.
XRP/USD, 4-Hour Chart Analysis
XRP is trading in a volatile short-term correction after its recent surge, and the $0.26 level is in focus now following a brief dip below $0.24 yesterday. The coin is still slightly overbought, and although we expect the rally to continue, with a test of the $0.30 zone, the current correction could last few more days. Support levels are now found at $0.22, $0.20, and $0.18, with resistance ahead at $0.26 and $0.30.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic remained relatively weak after breaking below the short-term rising trendline, as it continues to trade below the $12 level and the crucial resistance zone around $13.50. Short-term traders should still wait for a move above the primary resistance zone, with support still found near $11 and $9 and further resistance ahead at $16 and $18.
XMR/USD, 4-Hour Chart Analysis
Monero’s market remained very calm even during yesterday’s brief altcoin panic, as the dominant low-volatility correction pattern is still intact. The coin still looks encouraging concerning the long-term picture, with the key $80 level still holding up. Further support is found at $68, while resistance is ahead at $100, $125, and near the all-time high above the $150 level.
NEO/USDT, 4-Hour Chart Analysis
NEO is still highly volatile as active trading continues in the coin, as it has been the case ever since the Chinese ICO-ban panic. The currency is back near the $30 level after yesterday’s plunge, and we still expect another test of the $40 level after the end of the current volatile consolidation. The long-term picture is bullish, with strong support at $25, and resistance ahead at $34 and $40.
IOTA/USD, 4-Hour Chart Analysis
IOTA is trading right at the $48 support level after yesterday’s spike lower, and we still expect the key $0.45-$0.48 support zone to hold up in the coming period. The next leg higher should carry the coin back to the $0.64 resistance, with another weaker level at $0.56, and a long-term target of $0.75.
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