Ethereum takes small steps towards recovery as global markets increase by 10%



The cryptocurrency segment looks much better than any other in the last 10 days, as the major currencies managed to withstand above the liquidation lows hit on Tuesday. While the rebound has stabilized the market, it is still a substantial fragility after the steep selloff, and up to further bullish moves, traders should not enter full positions.

That said, finally, there are signs of relative strength among the best coins as correlations are slightly lower and some of the bearish leaders have managed to recover key resistance levels. Litecoin is tradable right at the crucial $ 56 level, while Monero is above the $ 90 level, and as we noted before the exhaustion of their downtrend is a positive sign or the entire segment.

XMR / USDT, 4-hour chart analysis

The following rebound and stability triggered some updates in our trend model after spending almost a month in the sales area, but there are still no majors on a buy signal as the bearish trend at the segment level remains intact. Bitcoin remains the strongest currency from a technical point of view, while Ethereum and Ripple, which have shown weakness for weeks, are also in better shape, even if they face very strong resistance levels.

ETH / USD, 4-Hour Graph Analysis

Ethereum managed to hold the $ 275- $ 280 level during nighttime withdrawal, and now sits back against the $ 300 resistance level, trying to build on the recent rally. While the short-term downtrend is intact, and longer-term momentum readings could fuel a rally in the coming weeks, but now the currency is in a structural bear market after breaking below $ 400.

it is now neutral from a short-term point of view, but a move below $ 275 would indicate another minimum test. Further resistance is ahead at $ 3335 and $ 360, while strong long-term support is at $ 260.

Bitcoin still under $ 6500 with XRP close to $ 0.30

BTC / USD, 4-hour chart analysis

Not much has changed for Bitcoin in the last days, but relatively speaking the larger currency has shown significant strength. That said, as long as BTC does not show bullish momentum, traders should not yet enter positions, since the structurally significant $ 5850 level is still not far below the current price level. A move above $ 6500 would trigger a short-term purchase signal, but further strong resistance levels are ahead of $ 6750 and $ 7,000, while support is still found at $ 6275 and $ 6000.

XRP / USDT analysis, 4-hour chart

Ripple and Ethereum are in very similar technical configurations, and XRP is also facing strong resistance at $ 0.30 after finding overnight support near $ 0.275. After the peak of panic below $ 0.26, the chances of a lasting increase, and if the currency were to remain above the lows of the night, the currency could avoid another short-term sales signal. While traders should still stay away from entering complete positions here, a background process may already be underway.

Featured image from Shutterstock

Disclaimer: The analyst possesses cryptocurrencies. It holds investment positions in currencies, but does not carry out short-term or day-trading transactions, nor holds short positions on any of the currencies.


Source link