ETHUSD – Rounding Bottom Pattern Above $3,600

Ethereum continued its bearish trend this week, and touched a low of $3,584 in the Asian trading session today, after which the prices have stabilized above the $3,600 handle.

Most of the selling witnessed in Ethereum was due to the end-of-the-year profit-taking by long-term investors, and at current levels, we can now see some buying in the markets.

ETHUSD continues to recover from its losses today and entered into a consolidation phase above $3,600.

We can clearly see a rounding bottom pattern above the $3,600 handle which signifies a trend reversal towards a bullish uptrend.

ETH is now trading just below its pivot levels of $3,706 and moving in a bullish consolidation channel. The price of ETHUSD is about to break its classic resistance level of $3,722 and its Fibonacci resistance level of $3,734, after which the path towards $3,800 will get cleared.

All the major technical indicators are giving a BUY signal.

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

• Ethereum trend reversal is seen above the $3,600 mark
• Short-term range appears to be mildly bullish for ETHUSD
• Commodity channel index is indicating a NEUTRAL market
• Average true range is indicating LESS market volatility

Ether: Mild Bullish Trend Reversal seen Above $3,600

ETHUSD is on its way to recover from its losses this week, and has entered into a consolidation phase above $3,600.

We can see a mildly bullish channel in progression today which if confirmed will push the prices of ETHUSD above $3,800 before the end of 2021.

Overall market scenario for Ethereum appears to be NEUTRAL.

StochRSI is indicating an OVERBOUGHT level which means more downward correction could also take place in the prices before the start of an upswing trend.

The average true range is indicating low market volatility, and we can see an increase of 12.16% in the trading volume as compared to yesterday.

ETH has lost -2.00% with a price change of -75.26$ in the past 24hrs and has a trading volume of 17.005 billion USD.

The Week Ahead

Ether is slowly recovering from its losses, and the price continues to uptick in the European trading session today.

We have detected an MA 10 and MA 5 crossover pattern which indicates a bullish reversal of the trend, and if this pattern continues, we can test levels of $3,800 to $3,850 very soon.

The immediate short-term outlook for Ether has turned positive; the medium to long-term outlook for Ether remain bullish with the target of above $5,000 in January 2022

The recent downturn has also led to the decline in the market capitalization of Ethereum to 439.44 billion USD.

Ethereum’s Transformation in 2022

In 2022, Ethereum will transition to Proof of Stake, which will bring in many advantages to the underlying network. The most notable are lower energy consumption, decentralization and scalability.

The change to the Proof of Stake will eliminate Ethereum’s mining and reduce the power consumption required to sustain the network. This change is expected to bring down the total energy level consumption by 99%. The change will also implement sharding and scalability that will lower the transaction costs of Ethereum.

Technical Indicators:

Ultimate oscillator: at 54.93 indicating a BUY

STOCH (9,6): at 66.95 indicating a BUY

Williams percent range: at -37.68 indicating a BUY

Average directional change (14-day): at 36.62 indicating a BUY

LTCUSD: Double Bottom Pattern Above $140

Litecoin continued its decline this week after touching a high of 166.65 last week and a low of 142.67 in today’s Asian trading session.

We can see that the prices have stabilized and entered into a consolidation phase above $140 in the European trading session today.

We can clearly see a double bottom pattern above $140, which signifies the end of a downtrend and a shift towards an uptrend.

At present, the markets are giving a mixed signal, so it would be better to wait till we can see clearer trends. We can also see a shift towards a mild bullish trend above the $140 handle.

Litecoin is now trading below its 100 hourly simple moving average and 200 hourly simple moving averages. The price of LTCUSD is just below its pivot level of 146.40

RSI is indicating a NEUTRAL level which signifies that the markets are ranging in a consolidation phase.

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

• Some of the major technical indicators are giving a BUY signal
• Mild bullish trend reversal is seen above $140
• Williams percent range is indicating a NEUTRAL market
• Average true range is indicating LESS market volatility

Litecoin: Bullish Reversal Above $140 Confirmed

The price of Litecoin has already entered into a consolidation phase above the $140 handle, and today, we can see a mildly bullish momentum in progression in the European trading session.

The short-term mild bullish phase for Litecoin is clearly visible, and we are aiming for the upside of $150.

The price of LTCUSD is now facing its classic resistance level of 147.00 and Fibonacci support level of 148.10, after which the path towards $150 will get cleared.

Litecoin’s trading volume has increased by 4.42% as compared to yesterday which appears to be an insignificant change.

In the last 24hrs, LTCUSD has gone DOWN by 1.94% with a price change of -2.90$ and has a 24hr trading volume of 1.131 billion USD.

The Week Ahead

Litecoin’s buying pressure is returning as we can see a continuous uptick in the price without any significant fall.

The overall scenario appears to be NEUTRAL for Litecoin, so it is clear that new investors will wait till the start of the next month to buy Litecoin in 2022.

We have detected an MA 10 and MA 5 crossover pattern which signifies a bullish reversal pattern and is a potential buying point at the current market levels.

The commodity channel index is neutral which signifies that markets are currently into the consolidation phase.

Most of the moving averages are indicating selling pressure in the markets which means that the prices can decline further from these levels.

Technical Indicators:

Ultimate oscillator: at 52.93 indicating a BUY

Stoch (9,6): at 55.55 indicating a BUY

StochRSI (14-day): at 67.32 indicating a BUY

Average directional index (14-day): at 28.21 indicating a BUY

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