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Cryptocurrencies tumbled again after the US CPI report

Are Ethereum ETH and Litecoin LTC Beginning to Reverse the Decline?

Posted Tuesday, March 1, 2022 by
Skerdian Meta • 2 min read

After declining since November, cryptocurrencies made an attempt to reverse higher at the end of January, which failed and crypto prices turned lower again this month. The escalation of the Ukrainian conflict turned the sentiment negative in financial markets which weighed on risk assets such as stock markets. Cryptocurrencies took another dive, but this time the decline seems to have stopped at or above January’s low, which suggests that the bearish period might be over and a bullish run might come soon for Litecoin and Ethereum.

Litecoin Daily Chart – The Support Above $100 Holds Again

LTC facing the 100 SMA now

Litecoin’s mimbleWimble upgrade which aims to increase scalability and security hasn’t gathered much interest, with the trend being bearish in LTC/USD since November. Today Litecoin states on its tweeter, ‘Reminder: #Litecoin has zero downtime in over 10 years#facebookdown’.

That’s good news but LTC/USD retested the $100 support again last week, after failing to break below it in January. Sellers pierced the support zone but there was no close below it, so there is no break. This week, we are seeing a bullish reversal higher, so LTC sellers are failing to break the $100 support zone. Now, LTC faces the 50 daily SMA (yellow) which will be the first test, and above that the support and resistance zone above $140.

Ethereum Daily Chart – Buyers Push ETH Above $3,000

If Ethereum closes above the 50 SMA today, it will be a bullish signal

Ethereum is the second cryptocurrency by market capitalization and the first one by total value locked (TVL) in DeDi applications on its blockchain. But, this has made Ethereum suffer from congestion and high gas fees. Ethereum is moving towards a faster and more environment-friendly PoS system, with Ethereum 2.0 and Vitalik Buterin has said that they will try to add a blob-carrying transaction feature to help with scalability. But at the moment this remains the main problem for Ethereum.

This, as well as the deteriorating sentiment in the crypto market, were keeping Ethereum quite bearish until late January, but we saw a bullish reversal back then which took the price to the 50 SMA (yellow) on the daily chart. Although, that moving average rejected the price twice and the decline resumed. This time though, ETH/USD is reversing higher, meaning that it is making higher lows, which is a bullish signal. Now the price has moved above the 50 SMA so buyers are in charge here as well at the moment.

Ethereum Coin Ether (ETH) Live Chart

ETH/USD
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