ETHUSD: Double Bottom Pattern Above $2,900
Ethereum continued its decline from its weekly high of $3,888 reached on January 4th, after which we saw heavy selling pressure due to which the prices of ETHUSD slid below the $3,000 handle.
ETHUSD touched a low of $2,937 on January 10th, after which we could see buying and a continuous uptick in the price of Ethereum.
We can clearly see a double bottom pattern above the $2,900 handle which is a bullish reversal pattern and signifies the end of a downtrend and a shift towards an uptrend.
ETH is now trading just above its pivot level of $3,340 and moving in a mild bullish channel. The price of ETHUSD is now testing its classic resistance level of $3,361 and Fibonacci resistance level of $3,354, after which the path towards $3,500 will get cleared.
StochRSI is indicating an OVERSOLD level which means markets are due for an upwards correction soon.
All the moving averages are giving a STRONG BUY signal at the current market price of $3,351.
Some of the technical indicators are giving a BUY signal.
ETH is now trading above its 100 hourly and 200 hourly simple moving averages.
- Ethereum bullish trend reversal is seen above the $2,900 mark
- Short-term range appears to be mildly bullish for ETHUSD
- Commodity channel index is indicating a NEUTRAL market
- Average true range is indicating LESSER market volatility
Ether: Bullish Trend Reversal Seen Above $2,900
ETHUSD continues to move into a consolidation channel above the $3,300 handle in the European trading session today.
The bullish trend line formation is clearly visible, indicating that the price of Ethereum will touch the level of $3,500.
We are also due for a major upwards correction in ETHUSD which could be in the form of a rally taking its price close to the $4,000 handle.
We can see a mildly bullish channel in progression today which is pushing the price of ETHUSD towards the $3,400 level.
ETH has gained 3.90% with a price change of 125.95$ in the past 24hrs and has a trading volume of 16.624 billion USD.
We can see an increase of 10.23% in the total trading volume in the last 24 hrs which appears to be normal.
The Week Ahead
Ethereum continues to outperform bitcoin in 2022 with a gain of 3.85% in the last 24hrs, as compared to bitcoin which gained 2.86% during the same period.
The immediate short-term outlook for Ether has turned mildly bullish, the medium-term outlook is NEUTRAL, and the long-term outlook for Ether is BULLISH with a RALLY formation towards the $4,000 handle.
ETHUSD continues to remain above the important psychological support level of $3,000, and is now on its path to cross $3,500.
This week, we can expect to see $3,500 to $3,600; and the next week Ether is expected to trade at a level above $3,600.
ETH 2.0
Ethereum is close to replacing Proof-of-Work with Proof-of-Stake with the launch of ETH 2.0. As of today, over 9 million ETH is now deposited in the Ethereum 2.0 deposit contract. This new network will be more energy efficient and reduce the total energy requirements by 99.9%.
To become a validator in the ETH 2.0, the investor will need to pledge 32ETH to the blockchain.
Technical Indicators:
Ultimate oscillator: at 51.13 indicating a BUY
Relative strength index (14-day): at 60.89 indicating a BUY
Moving averages convergence divergence (12,26): at 21.90 indicating a BUY
Bull/Bear power (13-day): at 2.99 indicating a BUY
LTCUSD: Bullish Engulfing Pattern Above $120
Litecoin had a major decline this week and touched a low of 121.50 on 10th January, after which we can see buying at low levels which continues to push its prices higher.
The bullish momentum seen in Litecoin continues in today’s European trading session.
In today’s early Asian session, LTCUSD touched an intraday high of 142.26, after which we saw a marginal decline towards an intraday low of 138.69.
At present the markets are in the consolidation phase above the $138 handle.
We can clearly see a bullish engulfing pattern above $120 which signifies a bullish reversal pattern and the start of an uptrend.
Litecoin is now trading above its 100 hourly simple moving average and 200 hourly exponential moving average. The price of LTCUSD is just above its pivot level of 140.33.
The relative strength index is at 67, indicating a strong demand for Litecoin and the continuation of the bullish trend.
All the moving averages are giving a STRONG BUY signal.
The short-term outlook for Litecoin has turned BULLISH.
- Some of the major technical indicators are giving a BUY signal
- Bullish trend reversal is seen above $120
- Williams percent range is indicating a NEUTRAL market
- Average true range is indicating LESSER market volatility
Litecoin: Bullish Reversal seen Above $120
The price of Litecoin is holding well above $138 today and moving in a mildly bullish channel formation.
We can see a continuous uptick in the prices of Litecoin, and buying pressure is expected to push its prices well above the $145 handle.
The price of LTCUSD is now facing its classic resistance level of 141.06 and Fibonacci resistance level of 141.43, after which the path towards $145 will get cleared.
In the last 24hrs, LTCUSD has gone UP by 5.71% with a price change of 7.59$, and has a 24hr trading volume of 0.898 billion USD.
Litecoin trading volume has increased by 13.64% as compared to yesterday, which appears to be normal.
The Week Ahead
Litecoin buying continues pushing its prices above the $140 handle, and we are now looking at levels of $142 to $145 very soon.
The short-term outlook for Litecoin has turned mildly BULLISH, the medium-term outlook is NEUTRAL, and the long-term outlook is BULLISH at present market conditions.
This week, we are looking at levels of $144 to $145, and next week Litecoin is expected to trade at a level above $145.
Technical Indicators:
Moving averages convergence divergence (12,26): at 1.669 indicating a BUY
Relative strength index (14-day): at 67.96 indicating a BUY
Ultimate oscillator: at 56.13 indicating a BUY
Bull/Bear power (13-day): at 1.828 indicating a BUY
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