ETHUSD and LTCUSD Technical Analysis – 19th MAY, 2022

FXOpen

ETHUSD: Double Top Pattern Below $2,121

Ethereum was unable to sustain its bullish momentum last week, and after touching a high of 2,151 on 16th May started to decline heavily against the US dollar.

We can see the continuation of the bearish momentum this week, and the decline continues pulling down the prices of Ethereum below the 2,000 handle in the European trading session today.

With the increase in the market liquidity many of the medium-term investors are selling their stakes amid the ongoing proposed Ethereum 2.0 network upgrade.

The prices touched an intraday low of $1,902 in the Asian trading session, and an intraday high of $1,971 in the European trading session today.

We can clearly see a double top pattern below $2,121 which is a bearish pattern and signifies the end of a bullish phase and the start of a bearish phase in the markets.

ETH is now trading just below its pivot level of 1,954 and moving into a consolidation channel. The price of ETHUSD is now testing its classic support level of 1,917, and Fibonacci support level of 1,945 after which the path towards 1,800 will get cleared.

The relative strength index is at 43 indicating a WEAK demand for Ethereum and the continuation of the bearish trend.

The StochRSI is indicating an overbought level which means that the price is due to decline further in the short term.

Most of the technical indicators are giving a STRONG SELL market signal.

All of the moving averages are giving a STRONG SELL signal, and we are now looking at the levels of $1,900 to $1,800 in the short-term range.

ETH is now trading below its 100 hourly and exponential MAs.

  • Ether: a bearish reversal seen below the mark of $2,121
  • Short-term range appears to be mildly BEARISH
  • The daily RSI is below 50 at 32 indicating a bearish market
  • The average true range is indicating LESS market volatility

Ether: Bearish Reversal Seen Below $2,121

ETHUSD is now moving in a mildly bearish channel with the prices trading below the $2,000 handle in the European trading session today.

We can see an SMA10 crossover pattern located at 1,940, which means that a potential bullish reversal is possible after touching these levels.

We have detected a bearish harami crossover pattern in the M15 chart which further validates the ongoing trends in the markets.

The key resistance levels to watch are $1,966 and $1,990, and the prices of ETHUSD need to cross these levels for a potential bullish reversal.

ETH has declined by 4.41% with a price change of 89.48$ in the past 24hrs, and has a trading volume of 18.320 billion USD.

We can see an Increase of 5.27% in the total trading volume in the last 24 hrs which appears to be normal.

The Week Ahead

The ongoing correction in the prices of Ethereum is also because of the pending ETH 2.0 network upgrade which is delayed from its original schedule. Many of the Ethereum investors are willing to wait till the new upgrade is launched before investing their funds.

The immediate short-term outlook for Ether has turned mildly BEARISH; the medium-term outlook has turned neutral; and the long-term outlook for Ether is NEUTRAL in present market conditions.

This week, Ether is expected to move in a range between $1,800 and $2,000, and next week, it is expected to enter into a consolidation phase above the level of $2,000.

Technical Indicators:

The Williams percent range: at -55.74 indicating a SELL

The moving averages convergence divergence (12,26): at -20.99 indicating a SELL

The ultimate oscillator: at 47.46 indicating a SELL

The rate of price change: at -1.364 indicating a SELL

LTCUSD: Bearish Harami Pattern Below $74

Litecoin was unable to sustain its bullish momentum last week, and after touching a high of 84.95 on 10th May started to decline against the US dollar.

The bearish momentum pulled down the prices of Litecoin below $70, touching a low of 64.65 in the European trading session today.

The selling pressure continues and we are expecting more downsides in the level of Litecoin towards the level of $60 this week.

We can clearly see a bearish harami pattern below $74 which signifies the end of a bullish phase and the start of a bearish phase.

Litecoin is now trading below its 100 hourly simple and 200 hourly exponential MAs. The price of LTCUSD is just below its pivot level of 67.96.

The relative strength index is at 43 indicating a WEAK demand for Litecoin, and the continuation of the bearish momentum in the markets.

The price of Litecoin continues to remain below most of the MAs, which is now giving a STRONG SELL signal at current market levels of 66.90.

The Williams percent range and commodity channel index are indicating a neutral level, which means that the prices are expected to enter into a consolidation channel.

The short-term outlook for Litecoin has turned mildly BEARISH.

  • Some of the technical indicators are giving a SELL signal
  • Litecoin: bearish reversal seen below $74
  • Litecoin: consolidation has started above $65
  • The average true range is indicating LESSER market volatility

Litecoin: Bearish Reversal Seen Below $74

We can see the formation of a consolidation pattern in Litecoin above the $65 handle which is expected to stabilize the downfall.

The price of LTCUSD is now facing its classic support level of 65.73 and Fibonacci support level of 67.43 after which the path towards $60 will get cleared.

The daily RSI is printing at 34 which is indicating a bearish market and the continuation of the downwards trend.

LTC has declined 5.97% with a price change of -4.25$ in the past 24hrs, and has a trading volume of 0.814 billion USD.

Litecoin’s trading volume has increased by 5.82% compared to yesterday which appears to be normal.

The Week Ahead

This week, we are looking at the support level of $54 and a shift towards the consolidation channel above the $60 handle. If the prices remain above these levels, we may see some bullish moves next week.

The short-term outlook for Litecoin has turned mildly BEARISH; the medium-term outlook is NEUTRAL; and the long-term outlook is NEUTRAL at present market conditions.

This week, we are looking at levels of $55 to $65, and next week, Litecoin is expected to consolidate at levels above $60.

Technical Indicators:

The relative strength index (14-day): at 43.16 indicating a SELL

The moving averages convergence divergence (12,26): at -0.832 indicating a SELL

The rate of price change: at -2.485 indicating a SELL

The ultimate oscillator: at 41.74 indicating a SELL

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