The price of Ethereum falls to $ 219 after the short rally: what's in store for ETH?


Although yesterday the main cryptocurrencies organized a rally in late trading, the market quickly passed and today most of the best coins are back near yesterday's lows. The strong sales pressure is evident at all levels and, despite the rebound, the majors have remained well below pre-selloff levels, maintaining the short-term sales signals in our trend model.

Ethereum continues to lead the market to lower levels very close to yesterday's lows, and threatening with a $ 205 test in the coming days, which could lead to a new 15-month low in the crucial currency. The correlations returned to levels of panic in the segment, although some of the majors improved slightly in the face of strong downward pressures, as the total market value fell to $ 200 billion.

With the long term The long-term picture is still negative for all major digital currencies, with the exception of the neutral BTC, the chances of new lows in the coming weeks are high, especially after the strong momentum movement of last two days. Traders should remain on the defensive despite deep losses, until signs of significant relative strength appear among the majors

BTC / USD, 4 hour chart analysis

Bitcoin remained below the short-term trend line during the rebound yesterday, and the currency is close to testing the $ 6275 level again, which has blocked yesterday's fall. Below this the lower level of $ 6000 and the crucial area near $ 5850 provide support, and given the momentum of the current movement a long-term zone test seems likely. The short-term sales signal is clearly in place, especially in view of the broad weakness of the altcoins, but the currency has so far avoided a long-term structural rupture.

ETH / USD, analysis of the 4-hour chart

Ethereum is still the biggest obstacle on the segment, and the currency has just passed yesterday's panic and today the new lows are very likely in the coming days. Below the $ 205 level, further long-term support is at $ 180, and could be a possible basis for a more lasting rally. Resistance is now ahead at $ 235 and $ 260 and traders should not yet enter new positions here

Altcoin feeling pain again

XMR / USDT, 4-hour chart analysis

altcoin are following the lead of Ethereum today and even the leaders of the recent rally are dropping sharply, with Monero still in the more bullish short-term model. Despite the still intact short-term uptrend, we keep the short-term sales signal on XMR too, as the currency has violated important levels of support, and yesterday showed no relative short-term strength. Now, Monero is testing the support level of $ 108, and a break below the one he'd hear of a $ 100 test, with a possible August low pass near $ 80. That said, with the minimum still far below the current price, the currency could be among the leaders of a future rally, along with BTC.

XRP / USDT, 4-Hour Graph Analysis

Ripple managed to recover the $ 0.30 level during yesterday's rebound, but the currency became significantly lower today in early trading and a level test $ 0.26 is still very likely next week. Considering that the trend is short and long term is negative and since our trend model is also on the sales signal in all time periods, traders should avoid placing new positions here. Additional support is found at $ 0.23, while the resistance is ahead at $ 0.3130 and $ 0.32.

LTC / USD, 4-hour chart analysis

LTC is still trading close to the $ 56 support / resistance level, but failed to show the relative strength between the rebound and the subsequent decline, so a shift to the lows near the $ 51 support level is still probable. The currency must keep the lows to avoid a probable $ 44 level test, but for now the bearish forces are dominant and the odds favor new lows in the currency.

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Disclaimer: the analyst possesses cryptocurrency. It holds investment positions in the currencies, but does not carry out short or daily transactions, nor holds short positions on any of the currencies.

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