ETHUSD Consolidating Towards $4000
Ethereum had a major bearish correction yesterday breaking down below the $4000 level, after which the price has stabilized and is moving to a consolidation phase towards the $4000 handle.
ETHUSD touched an intraday high of $4298 on Wednesday, after which the prices saw a correction of more than 5%. The pair touched an intraday low of $3913 in today’s European trading session.
ETH is now trading just above its pivot level of $4018 and Camarilla resistance level of $4016. ETH is gaining bullish uptrend today and is about to break its classic resistance level of $4057.
Ether is expected to continue its uptrend move this week and reach the $4400 mark before this weekend. All the major technical indicators are giving a STRONG BUY signal.
ETH is now trading just above its 100 hourly simple moving averages. Moving averages crossover has been detected, signaling a potential change in trend towards $4400.
- Ethereum recovered its losses and continues to trade above the $4000 level
- Short-term to medium-term outlooks remain bullish for ETHUSD
- Average true range indicates less market volatility
- Moving averages crossover pattern seen in 5 hourly MA
Ether’s Straight Uptrend Towards $4400
ETHUSD price declined heavily against the US Dollar yesterday, but the dips remained well supported pushing it back above the important psychological level of $4000. ETH price is now building a positive momentum, and we could see some fresh gains in the US trading session today.
ETH is now facing its next major resistance levels of $4100 and $4179 after which the path towards $4400 will get cleared.
The relative strength index is at 56 indicating more upside potential for ETHUSD in the coming days. ETH has gained 2.82% with a price change of +$113.79 in the past 24hrs and has a trading volume of 23.695 Billion USD.
Ethereum To Hit $6000 in 2021
The Ethereum blockchain is moving towards Ethereum 2.0, which is proposed to be a much greener and faster version of the current system. The Altair upgrade to Beacon chain will likely push the prices of ETHUSD further up.
Traders are now waiting for the release of the upgrade, and with renewed buying pressure the prices of Ethereum are expected to touch $6000 before the end of this year.
The Week Ahead
Ethereum price is moving in an uptrend from the starting of this month and the trend is expected to continue this week. We could witness a short-selling in the ETH for some time below the sub$4000 level as seen yesterday, but the dips will remain well supported marking the resumption of the bullish trend.
We have seen moving averages crossover patterns for 5 hourly MA, and also for 5 day MA suggesting that both in the short- to medium-range the bullish outlook will continue.
The price of ETHUSD has already broken 200 hourly simple and exponential moving averages and is on its way towards the $4400 handle this week.
Technical Indicators:
Average directional change (14-day): at 45.57 indicating a BUY
Bull/Bear power (13-day): at 221.075 indicating a BUY
Ultimate oscillator: at 62.62 indicating a BUY
Commodity channel index (14-day): at 282.79 indicating OVERBOUGHT levels
LTCUSD: Falling Wedge Pattern Above $175
Litecoin saw a major bearish correction yesterday and dropped by more than 9%, after which the prices have stabilized, and is now moving to a consolidation phase towards the $180 handle.
The price of LTCUSD touched an intraday high of 204.74 on Wednesday after which it broke the important psychological level of $200 and touched an intraday low of $172.05.
Litecoin is now trading below its 100 hourly simple and exponential moving averages. The price of LTCUSD is just about to clear its pivot level of 186.53.
The sell-off that we saw yesterday saw Litecoin breaking its major support level of $187. Short- to medium-term outlook for Litecoin remains bullish with the target of above $200.
- All the major technical indicators are giving a STRONG BUY signal
- Litecoin is now facing its major resistance level of $199
- Uptrend is seen in short- to medium-term range
- Relative strength index is neutral
Litecoin: Trend Reversal Above $175 Confirmed
The price of Litecoin is oscillating between its 10 hourly moving average and 100 hourly moving averages.
The price of LTCUSD is now facing its Fibonacci resistance levels of 191.53 and classic resistance levels of 194.86, after which the path towards $200 will get cleared.
Falling wedge pattern is seen at level above $175 indicating that a potential bullish trend reversal is expected which would steer the prices of LTCUSD above the level of $200.
Litecoin is trading with less market volatility today as the prices have entered a consolidation phase now. In the last 24hrs LTCUSD has risen UP by +1.18% with a price change of +1.85$ and has a 24hr trading volume of 2.745 billion USD.
The Week Ahead
The price of Litecoin is strongly correlated with bitcoin, and as we saw a major drop in BTC, the same was reflected in the prices of LTC. An upwards move in bitcoin will push the prices of LTCUSD well above the $200 mark in the coming days.
Further losses in the price of LTCUSD remain limited, and any bearish corrections will open the doors for a fresh rally later this week.
Commodity channel index is indicating overbought levels, and short-term corrections are expected below $180 mark.
We could witness levels of $190 this week, and the next, Litecoin is expected to trade at levels of above $210.
Technical Indicators:
Ultimate oscillator: at 53.28 with a BUY
Rate of price change: at 1.028 with a BUY
StochRSI (14-day): at 86.05 indicating OVERBOUGHT levels
Bull/Bear power (13-day): at 7.582 indicating a BUY
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