ETHUSD: Head and Shoulders Pattern Below $4,000
Ethereum was unable to sustain its bullish momentum and started its decline below the $4,000 handle in the Asian trading session today.
ETHUSD touched an intraday low of $3,894; the selling pressure continues in the European trading session. We can clearly see a head-and-shoulders pattern below the $4,000 handle which signifies that the prices will break out into a bearish downtrend.
ETH is now trading just below its pivot level of $3,926 and is moving in a bearish descending channel. The price of ETHUSD is about to break its classic support level of $3,890 and its Fibonacci support level of $3,903, after which the path towards $3,800 will get cleared.
All the major technical indicators are giving a STRONG SELL signal.
ETH is now trading below both its 100 hourly and 200 hourly simple moving averages.
- Ethereum trend reversal is seen below the $4,000 mark
- Short-term range appears to be bearish for ETHUSD
- All the moving averages are giving a STRONG SELL signal
- The average true range is indicating LESSER market volatility
Ether Bearish Trend Below $4,000 Confirmed
ETHUSD continues to move in a bearish channel with the price breaking below the important psychological support level of $4,000.
The relative strength index is below 50 today, which signifies a continuation of the bearish trend.
The amount of selling that is seen in Ethereum can also be attributed to the liquidation of crypto assets by global investors before the end of this financial year.
The average true range is indicating a low market volatility, and we can see an increase of 10.67% in the trading volume, as compared to yesterday.
We can also see Ethereum’s decoupling from bitcoin which means that the correlation between BTC and ETH is dropping.
ETH has lost -2.67% with a price change of 107.06$ in the past 24hrs, and has a trading volume of 15.165 billion USD.
The Week Ahead
Ether is printing below the $4,000 mark today, and we can expect the downtrend to continue this week pushing its price down to the levels of $3,800 and $3,750.
The immediate short-term outlook for Ether has turned negative, but the medium to long-term outlook remains bullish with the next month target of above $5,000. The recent downturn has also led to the decline in the market capitalization of Ethereum to 467.11 billion USD.
We are now looking at the end-of-the-year market liquidation where many of the investors are selling their long-term holdings in Ethereum; they are expected to be back in the markets in the month of January 2022.
Ultimate oscillator: at 48.80 indicating a SELL
Moving averages convergence divergence (14-day): at -19.80 indicating a SELL
StochRSI (14-day): at 26.95 indicating a SELL
Commodity channel index (14-day): at -132.99 indicating a SELL
LTCUSD: Head and Shoulders Pattern Below $160
Litecoin was unable to sustain its bullish momentum and started its decline after touching a high of 159.95 yesterday.
We can see a continuous selling pressure in Litecoin markets across global cryptocurrency exchanges, which is pushing the prices down below $160, where a clear head-and-shoulders pattern has formed, signifying that the prices will break out into a bearish downtrend.
LTCUSD today touched an intraday low of 153.17, after which the price recovery was seen for some time. The markets are now back to $155, and in today’s US trading session, we are looking at the level of $150.
At present, the markets are giving a mixed signal, so it would be better to wait till we can see trends more clearly. We can also see a shift towards a bearish trend formation below the $160 handle.
Litecoin is now trading just above its 100 hourly simple moving average, and 200 hourly simple moving average. The price of LTCUSD is about to break its pivot level of 154.83. The RSI is indicating a NEUTRAL level, which signifies that the markets were ranging in a consolidation phase.
The short-term outlook for Litecoin has turned Bearish.
- All the major technical indicators are giving a STRONG SELL signal
- All the MOVING AVERAGES are giving a SELL signal
- StochRSI is giving an OVERSOLD signal
- Average true range is indicating LESSER market volatility
Litecoin Bearish Trend Below $160 Confirmed
The price of Litecoin is about to enter into a consolidation phase below the $155 handle before starting its decline towards the $150 mark. A short-term bearish phase for Litecoin is clearly visible and we are aiming for a break below the $150 level today.
The price of LTCUSD is now facing its classic support level of 153.16 and Fibonacci support level of 154.37 after which the path towards $150 will get cleared.
Litecoin trading volume has increased by 22.25% as compared to yesterday due to more sellers entering the markets now.
In the last 24hrs, LTCUSD has gone DOWN by 0.96% with a price change of 1.51$ and has a 24hr trading volume of 1.144 billion USD.
The Week Ahead
Litecoin needs to remain above its major support level of $150 for any bullish reversal. We can see that the selling pressure in Litecoin is increasing which is why its price can slide below the $150 handle at any given time. The relative strength index is neutral which signifies that markets are due to enter into a consolidation phase.
This selling pressure is attributed to the end-of-the-year crypto liquidation by global investors, and we can see a buying pressure in the starting week of January 2022 as the bulls will prepare for an uptrend in Litecoin.
Ultimate oscillator: at 46.08 indicating a SELL
Stoch (9,6): at 44.92 indicating a SELL
Moving averages convergence divergence (12,26): at -0.081 indicating a SELL
Average directional index (14-day): at 37.06 indicating a SELL