Over the past week or so, we brought readers attention to the action in both Ethereum (ETH) as well as Litecoin (LTC). While both had been acting fairly well and displaying decent technical characteristics (particularly ETH), both have recently given way to the down-side joining the entire slide within the cryptocurrency universe.
While neither ETH nor LTC was exhibiting signs that an imminent break to northern ground was in the offing, both nonetheless were showing some signs of strength in their ability to hold the line while many cryptocurrencies had already begun to show technical deficiencies.
Nevertheless, both time and market conditions have caught-up with both ETH and LTC as both have succumbed to selling pressure and find themselves trading at or near potential short-term support levels/zones.
With that said, let’s revisit both Ethereum and Litecoin and see what the technical picture is portraying at this time.
As we can observe from the daily Chart of ETH above, Ethereum was holding things together fairly well, while trading within a triangle formation and holding support at the 640-660 zone. Although the coil was tightening within the triangle and a move either top-side or southbound was in the cards, ETH was still displaying decent relative strength until ultimately breaching the triangle lower where it presently finds itself flirting with yet another potential support zone in the 575-600 area.
Thus, as a result of current overall conditions within the cryptocurrency sphere, ETH was unable to withstand the selling onslaught and now requires work in order to repair its technical posture.
With that said, let’s take a look at some levels to monitor moving forward that may provide both investors/traders with further clues/evidence with respect to direction.
If, at any point in the days/weeks ahead ETH can recapture the 660 level (former support now turned short-term resistance) and perhaps more importantly can clear the 725 hurdle and ‘stick’, such development, should it materialize, would be a positive indication that perhaps buyers have wrested control back into their hands.
However, on the opposite side of the ledger, both investors/traders may want to monitor the 550-575 zone as initial potential short-term support, with more meaningful potential support residing at the 480-500 zone.
Nonetheless, ETH has (as has the entire cryptocurrency landscape) fallen victim to overall market sentiment and now finds itself in an attempt at containing any further slippage.
Moving on to Litecoin (LTC), we can observe from the Chart below that LTC has also fallen victim to Mother Market after attempting to come up-and-out of and inverted Head-and-Shoulders (H&S) formation earlier this month only to fail just above the neckline (purple horizontal line) and slide the slippery slope lower.
When viewing the action of LTC above, we can witness that after LTC failed just above its neckline in early May, the move for lower depths began and as a result, LTC breached both its 200 (red line); 20 (yellow line) as well as its 50DMA’s (blue line) respectively, which negated any favorable technical characteristics and now finds itself trading below all of its important moving averages (20/50/200DMA’s) as well as the downtrend line (light blue line).
Thus, while things were looking fairly good for LTC from a technical perspective just a short few weeks ago, the tables have been turned and now LTC, like the entire cryptocurrency sphere, finds itself attempting to stem any further bleed lower.
With that said, both investors/traders may want to monitor the following levels for additional clues/evidence with respect to a direction moving forward.
If, at any time in the days/weeks ahead, LTC is capable of recapturing the 124 as well as the 140 figure/s and perhaps, more importantly, can clear the 154 hurdle and ‘stick’, such accomplishment, should it materialize, would certainly be a first step in repairing the short-term technical damage inflicted.
On the flip-side of the coin, both investors/traders may want to monitor the 109-112 zone with a close eye for potential short-term support as LTC has already taken-out multiple support levels just above where it trades at this moment in time.
Needless to say, the overall environment remains slippery and challenging. Thus, both investors/traders (particularly Traders) may want to keep things on a tight leash and honor Your Stops as risk management is priority number one and paramount, as always. Live to trade another day!
Happy Trading!!
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Charts courtesy of tradingview.com
The post Ethereum (ETH) Litecoin (LTC) Technical Analysis – Succumb To Selling Pressure appeared first on Global Coin Report.
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