ETHUSD and LTCUSD Technical Analysis – 24th FEB, 2022

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ETHUSD: bearish Engulfing Pattern Below $2,900

Last week, Ethereum failed to clear its resistance level of $3,200 and started moving into a bearish channel which continues today, pushing down the price below the $2,500 handle in the European trading session.

Ethereum markets are witnessing a strong bearish phase with the investors selling their holdings in the wake of the attack of Russia on Ukraine’s border areas.

We have seen that the safe-haven status of the USD holds, which continues to push down the prices of ETHUSD in the medium-term scenario.

We can clearly see a bearish engulfing pattern below the $2,900 handle which is a bearish pattern and signifies the end of a bullish phase and the start of a bearish phase in the markets.

ETH is now trading just above its pivot level of $2,352 and moving in a bearish channel. The price of ETHUSD is now testing its classic support level of $2,235 and Fibonacci resistance level of $2,320, after which the path towards $2,100 will get cleared.

The relative strength index is at 27 indicating a WEAKER demand for Ethereum and the continuation of the selling pressure in the markets.

All 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 level of $2,200 to $2,100 in the short-term range.

ETH is now trading below its 100 hourly and 200 hourly simple moving averages.

  • A bearish reversal is seen in Ether below the $2,900 mark
  • The short-term range appears to be strongly BEARISH
  • The daily RSI is below 50 at 32 indicating a BEARISH market
  • The average true range is indicating LESS market volatility

Ether: Strong Bearish Momentum Seen Below $2,900

ETHUSD is now moving into a strong bearish momentum with the prices trading below the $2,400 handle in the European trading session today.

Both the Williams percent range (daily) and StochRSI (daily) is indicating an OVERSOLD market, which means that a pullback in the levels of Ethereum is expected soon.

We can see that the bearish trend line has extended, and now a move below $2,200 is expected in the short-term.

The prices of ETHUSD need to remain above the $2,100 handle for any bullish reversal in the markets.

At present, we are looking for an immediate target of $2,200 after which it is expected to enter into a consolidation and correction phase.

The key support level to watch is $2,100, and the key resistance level is $2,500 for this week.

ETH has declined -12.29% with a price change of -332.72$ in the past 24hrs, and has a trading volume of 20.564 billion USD.

We can see an increase of 36.99% in the total trading volume in the last 24 hrs due to the broad-based selling in the crypto markets globally.

The Week Ahead

Ethereum is now moving into a consolidating level above $2,200 which if completed will give the buyers a chance to pull back its levels towards its important resistance zone located at $2,500.

The ongoing Russia-Ukraine war crisis is also affecting the global cryptocurrency markets including Ethereum because the investors are now not willing to hold Ethereum in view of the market liquidity crunch in Europe and Russia.

If the prices of ETHUSD continue to remain above $2,000, as we have seen today, next week, it will start the next leg of its bullish moves towards the $2,500 handle.

The immediate short-term outlook for Ether has turned strongly BEARISH; the medium-term outlook has turned NEUTRAL; and the long-term outlook is BULLISH towards the $3,000 handle.

This week, Ether is expected to move in a range between $2,000 and $2,500, and next week, Ether is expected to trade at above $2,500.

Technical Indicators:

The moving averages convergence divergence (12,26): at -71.42 indicating a SELL

The commodity channel index (14-day): at -82.77 indicating a SELL

The rate of price change: at -9.82 indicating a SELL

Stoch (9,6): at 20.89 indicating a SELL

LTCUSD: Bearish Engulfing Pattern Below $121

Litecoin failed to clear its resistance zone located at the level of $3,500, and started to decline heavily against the US dollar this week. We can see that in today’s European trading session, the price of LTCUSD has broken through $2,400.

This broad-based selling in Litecoin is the outcome of Russia’s invasion of the Ukraine, and fears among the crypto investors, all of which is causing a continuous fall in the prices of LTCUSD.

LTUCSD touched an intraday high of 107.49 in the early Asian trading session, and an intraday low of 92.53 in the European trading session today.

We can clearly see a bearish engulfing pattern below the $121 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 moving average, and 200 hourly exponential moving average. The price of LTCUSD is just above its pivot level of 95.20.

The relative strength index is at 21 indicating a WEAKER demand for Litecoin, and the continuation of the bearish momentum in the markets.

Litecoin prices continue to remain below all of the moving averages, which are now giving a STRONG SELL signal at current market levels of 95.43.

Both Stoch and StochRSI are indicating an oversold market — which means that we can expect a short-term upwards correction.

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

  • All of the technical indicators are giving a STRONG SELL signal
  • A bearish reversal seen below $121
  • The Williams percent range is indicating an OVERSOLD market
  • The average true range is indicating HIGH market volatility

Litecoin: Strong bearish Momentum Seen Below $121

The price of Litecoin continues to move in a strong bearish channel below the $100 handle, and we can see a progression of the bearish trend towards $94.

As the selling in Litecoin intensifies, a possibility of a pullback is also present at the level of $94.80. This is indicated by the MA5 crossover pattern seen at these levels.

Bollinger bands are also indicating a sell at levels below $99 towards the target of $90.

The price of LTCUSD is now facing its classic support level of 92.60 and Fibonacci support level of 94.55 after which the path towards $90 will get cleared.

The daily RSI is printing at 32 which also indicates a weak demand for Litecoin in the medium-term.

LTC has declined -13.34% with a price change of -14.70$ in the past 24hrs, and has a trading volume of 1.1157 billion USD.

Litecoin’s trading volume has increased by 40.25% compared to yesterday due to the heavy selling by long-term holders.

The Week Ahead

We have seen that Litecoin continues to decline heavily against the US dollar, and with no pullback support, we are expecting to touch the level of $93 very soon.

The prices of Litecoin are impacted by the Russia-Ukraine war tensions and the panic selling that is seen following these news reports in the LTCUSD markets.

At present, Litecoin has entered into a consolidation channel above the $92 handle. If the prices of LTCUSD continue to remain above the level of $90, then next week, we may see a bullish reversal in the markets towards $110.

The short-term outlook for Litecoin has turned strongly 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 $90 to $100, and the next week, Litecoin is expected to trade at levels above $100.

Technical Indicators:

The ultimate oscillator: at 32.13 indicating a SELL

High/Lows (14-day): at –18.47 indicating a SELL

The rate of price change: at -29.27 indicating a SELL

The average direction change (14-day): at 32.11 indicating a SELL

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