ETHUSD: Double Bottom Pattern Above $3,000
Ethereum was unable to sustain its bullish momentum this week, and after touching a high of $3,409 on 12th January, started declining against the US dollar.
ETHUSD touched an intraday low of $3,080 in the Asian trading session today, after which we can see some consolidation in its prices above the $3,000 handle.
We can clearly see a double-bottom pattern above the $3,000 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 below its pivot levels of $3,131 and is moving in a consolidation channel. The price of ETHUSD is now testing its classic resistance levels of $3,138 and Fibonacci resistance level of $3,146, after which the path towards $3,300 will get cleared.
The relative strength index is at 49, indicating a NEUTRAL market and a move towards the consolidation phase after the decline.
We have detected an MA 20 crossover pattern above the $3,124 level which signifies a bullish trend reversal in the short-term.
Some of the technical indicators are giving a BUY signal.
ETH is now trading below the 100 hourly and 200 hourly simple moving averages.
- Ethereum consolidation is seen above the $3,000 mark
- Short-term range appears to be NEUTRAL
- Ultimate oscillator is indicating a NEUTRAL market
- Average true range is indicating LESSER market volatility
Ether Consolidation Channel Seen Above $3,000
ETHUSD continues to move into a consolidation channel above the $3l000 handle in the European trading session today.
Most of investors are not entering the markets and are waiting for a bullish momentum.
The commodity channel index is indicating a NEUTRAL market, and the overall sentiment is also neutral at these levels.
We are also due for a major upwards correction in the ETHUSD which could manifest in the form of a rally taking its prices close to the $4,000 handle.
We can see a mildly bullish channel in progression today which is expected to push the prices of ETHUSD towards the $3,300 level.
ETH has gained 1.47% with a price change of 45.44$ in the past 24hrs, and has a trading volume of 11.474 billion USD.
We can see a decrease of 16.90% in the total trading volume in the last 24 hrs., which appears to be normal.
The Week Ahead
Ethereum is now approaching its important support level of $3,000 which will decide whether we will see a bullish reversal in the markets.
If the price of ETHUSD continues to remain above the $3,000 handle, as we can see today, it will signify a bullish reversal with an upside target of $3,300 to $3,500 in the next week.
The immediate short-term outlook for Ether has turned NEUTRAL, the medium-term outlook is MILDLY BULLISH, and the long-term outlook for Ether is BULLISH with a RALLY formation towards $4,000.
MACD has indicated a bullish crossover which is also giving a BUY signal at the current market levels.
This week, we can expect to see $3,300 to $3,400, and in the next week Ether is expected to trade at levels above $3,500.
Williams percent range: at -37.39 indicating a BUY
Stoch (9,6): at 71.39 indicating a BUY
Moving averages convergence divergence (12,26): at 1.75 indicating a BUY
StochRSI (14): at 58.95 indicating a BUY
LTCUSD: Double Top Pattern Below $153
Litecoin was moving in a bullish momentum and touched a high of $153.87 on 17th January, after which we can see a decline in its prices below the $140 handle.
We have seen Litecoin gaining more than 13% in the previous week due to increased investor confidence as many long-term investors entered into the markets.
LTCUSD touched an intraday low of 133.27 after which we can see some consolidation in its levels in the European Trading session today.
We can clearly see a double top pattern below the $153 handle which signifies a bearish reversal pattern and the start of a downtrend.
Litecoin is now trading below its 100 hourly simple moving average and 200 hourly exponential moving average. The price of LTCUSD is just below its pivot level of 137.96
The relative strength index is at 45 indicating a NEUTRAL market and a shift towards the consolidation phase.
All the moving averages are giving a STRONG SELL signal.
The short-term outlook for Litecoin has turned BEARISH.
- Most of the major technical indicators are giving a SELL signal
- Bearish trend reversal is seen below $153
- STOCHRSI is indicating an OVERSOLD market
- Average true range is indicating a LESSER market volatility
Litecoin: Bearish Reversal Seen Below $153
The price of Litecoin continues to decline against the US dollar and is now trading below the $140 handle.
We can see a move towards the consolidation phase which is expected to keep its prices above the $130 handle.
In the present market conditions, Stoch and the ultimate oscillator are giving a BUY signal for a potential market reversal from these levels.
The price of LTCUSD is now facing its classic support level of 136.43 and Fibonacci support levels of 137.58, after which the path towards $130 will get cleared.
In the last 24hrs, LTCUSD has gone UP by 1.76% by 2.37$, and has a 24hr trading volume of 0.748 billion USD.
Litecoin trading volume has decreased by 31.33% as compared to yesterday due to lower market sentiments.
The Week Ahead
Litecoin is now due to enter into a consolidation channel above the $130 handle. If the price of LTCUSD continues to remain above these levels, then we could see a bullish reversal in the markets next week.
The short-term outlook for Litecoin has turned BEARISH, 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 $130 to $140, and next week, Litecoin is expected to trade at levels above $145.
Moving averages convergence divergence (12,26): at -0.176 indicating a SELL
Commodity channel index (14-day): at -61.02 indicating a SELL
Rate of price change: at -0.363 indicating a SELL
Bull/Bear power (13-day): at -0.9320 indicating a SELL