Litecoin’s Crash Stalls at MAs, Ethereum Showing Bullish Pressure Again
Skerdian Meta • 2 min read
The cryptocurrency market went through a sudden crash last week, something we have become used to by now. We saw some major losses in most cryptos, as traders started to book profits before the holiday season. The FED tapering that is currently underway is another factor, and some analysts see a further retreat in the crypto market because of it. The new coronavirus variant is also a minor factor, since it is deterring investors from risky assets, such as cryptos. But the decline seems to be over for now, with Ethereum already resuming the uptrend, while Litecoin is trying to decide whether to start reversing.
Litecoin Daily Chart Analysis – LTC Deciding at MAs
The retreat in Litecoin seems to be over
Litecoin wasn’t showing much bullish pressure since August, when other cryptos were making some major gains. But it suddenly popped $100 higher earlier in November, getting close to $300, as the Litecoin Visa debit card brought this crypto closer to the mainstream, and this should help increase LTC transactions. Also, the cryptocurrency exchange, Kraken, had some positive things to say about Litecoin’s on-chain metrics, suggesting that the active addresses and activity have been increasing fast recently.
But LTC/USD failed to hold the gains at $300 and the bearish momentum in the market pulled it down further. LTC has been retreating for three straight weeks now, but the pullback might have come to an end. We see that the 100 SMA (green) and the 50 SMA (yellow) are providing support on the weekly chart, while the stochastic indicator is oversold. So, we might see an upward reversal in Litecoin soon, therefore we’re holding onto our buy signal here.
Ethereum Daily Chart Analysis – ETH Increasing Above $4,000
Ethereum continues to remain in the bullish zone above $4,000
Ethereum has been quite stable in its uptrend, with pullbacks lower not being so dramatic, that’s why it is considered as the average indicator for the crypto market now. Moving averages have been doing a good job as support indicators on the daily chart,
Ethereum was heading for $5,000 last month, while the $4,000 level turned into another support level, which is still holding, despite being pierced on Saturday. But the daily candlestick closed as a hammer above that moving average, and the 100 SMA (green) is also providing support. Yesterday, we saw a bounce off this moving average, and now ETH/USD is trading above $4,000 again, which puts it into the bullish zone. Judging by the price action, Ethereum will break above $5,000 before the end of the year.