ETHUSD and LTCUSD Technical Analysis – 12th MAY, 2022

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ETHUSD: Double Top Pattern Below $2,450

Ethereum was unable to sustain its bullish momentum last week, and after touching a high of 2,960 on May 4, 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 1,900 handle in the European trading session today.

The global investor sentiment is very weak, which is the cause of the massive slide in the cryptocurrency markets, including Ethereum.

After touching an intraday low of $1,780, we can see some pullback action and a move towards the consolidation channel above the $1,800 handle.

We can clearly see a double top pattern below the $2,450 handle, which is a bearish pattern; it 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 1,908 and  moving into a consolidation channel. The price of ETHUSD is now testing its classic support level of 1,820 and Fibonacci support level of 1,884, after which the path towards 1,800 will get cleared.

The relative strength index is at 35, indicating a WEAK demand for Ethereum and the continuation of the bearish trend.

The StochRSI is indicating a neutral level which means that the prices are due to remain into a consolidation phase in the short term.

All 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 $1,850 to $1,800 in the short-term range.

ETH is now trading Below both the 100 hourly and exponential MAs.

  • Ether: a bearish reversal is seen below the $2,450 mark
  • The short-term range appears to be mildly BEARISH
  • The daily RSI is below 50 at 24, indicating an OVERSOLD market
  • The average true range is indicating HIGH market volatility

Ether: Bearish Reversal Seen Below $2,450

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 MA5 crossover pattern located at 1,884, which means that a potential bullish reversal is possible after touching these levels.

ETHUSD is now facing its immediate support level of $1,861 and $1,841 after which we will see a linear progression towards the level of $1,800.

The key resistance levels to watch are $1,931 and $1,976, and the prices of ETHUSD need to cross these levels for a potential bullish reversal.

ETH has declined by 19.67% with a price change of 468.56$ in the past 24hrs and has a trading volume of 54.488 Billion USD.

We can see an Increase of 53.79% in the total trading volume in the last 24 hrs. which is due to the heavy selling by long-term investors.

The Week Ahead

The global economic factors and the increase in the interest rate announced by the Fed  have made the US dollar stronger, which has led to a massive decline in the prices of Ethereum.

The delay in the implementation of the ETH 2.0 upgrade is also keeping the investors away from the markets.

The immediate short-term outlook for Ether has turned mildly BEARISH; the medium-term outlook has turned neutral; 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, Ether is expected to enter into a consolidation phase above the level of $2,000.

Technical Indicators:

The Stoch (9,6): at 22.35 indicating a SELL

The moving averages convergence divergence (12,26): at -104.87 indicating a SELL

The ultimate oscillator: at 40.75 indicating a SELL

The rate of price change: at -9.43 indicating a SELL

LTCUSD: Bearish Engulfing Pattern Below $82

Litecoin was unable to sustain its bullish momentum last week, and after touching a high of 106.81 on May 5, started to decline against the US dollar.

The bearish momentum pulled down the prices of Litecoin below the $60 handle touching a low of 54.11 in the European trading session today. The price of Litecoin has stabilized and entered a consolidation channel above the $60 handle.

We can clearly see a bearish engulfing pattern below the $82 handle which is a bearish pattern and 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 above its pivot level of 60.50.

The relative strength index is at 36 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 are now giving a STRONG SELL signal at current market levels of 61.

The StochRSI is indicating an overbought level, which means that the prices are expected to decline further.

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

  • All of the technical indicators are giving a STRONG SELL signal
  • Litecoin: a bearish reversal seen below $82
  • Litecoin has declined by more than 25% in the last 24hrs
  • The average true range is indicating LESS market volatility

Litecoin: Bearish Reversal Seen Below $82

The prices of Litecoin continue to decline and are now trading below the $65 handle in the European trading session. After this recent decline, we can see some pullback action and a move towards the consolidation phase above $60.

The price of LTCUSD is now facing its classic support level of 56.80 and Fibonacci support level of 59.58, after which the path towards $55 will get cleared.

The daily RSI is printing at 22 which is indicating an oversold market and a potential bullish reversal in the short-term.

LTC has declined 25.75% with a price change of 21.07$ in the past 24hrs, and has a trading volume of 2.436 billion USD.

Litecoin’s trading volume has increased by 61.45% as compared to yesterday, which is due to the heavy selling seen across the global cryptocurrency markets.

The Week Ahead

This week, we are looking at the support level of $56 and the shift towards the consolidation above the $60 handle. If the prices remain above this level, 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 $60 to $65, and next week, Litecoin is expected to consolidate at levels above $65.

Technical Indicators:

The relative strength index (14-day): at 36.92 indicating a SELL

The moving averages convergence divergence (12,26): at -4.411 indicating a SELL

The rate of price change: at -10.57 indicating a SELL

The ultimate oscillator: at 45.98 indicating a SELL

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