Cryptocurrencies have turned their tail and crashed unexpectedly. They’ve had a strong uptrend lately, with Bitcoin overtaking $ 53,000 today, while Ethereum just climbed above $ 4,000 a few days ago. But they’ve all turned around and crashed about 30%, even the most bullish ones like the Solana coin which is up nearly 300% in three weeks.
Ethereum Analysis – The 50 SMA stops the decline for ETH / USD
Ethereum went bullish more than a month ago after forming solid support zone around the $ 1,700 mark. It pushed above all the moving averages on the daily chart and the 20 SMA (gray) became support, indicating that the trend was quite strong.
Ethereum has been one of the strongest cryptos in this upward phase since the end of July, gaining around 250% and breaking above $ 4,000 in particular. But the crash today was pretty quick and the price fell to the previous support zone around $ 3,000. At least this support zone has held up again and the price has climbed back above the 20 SMA. So this moving average is not yet considered broken, which means the uptrend is continuing and this sudden crash could be a good opportunity to buy Ethereum and other cryptocurrencies.
ETH / USD
Litecoin Analysis – The 200 SMA is believed to be support for LTC / USD
Litecoin finds support with the 50 and 100 daily SMAs
Litecoin lagged the crypto market until the end of last week as it stagnated below the 200 SMA (purple) on the daily chart. But the breakout came on Friday and Litecoin rose to $ 233 and gained around 40% in value in a matter of days.
However, there was a reversal today after the rest of the market fell and LTC / USD fell to $ 163 and all gains were back on. However, the 100 SMA (green) held the decline, also supported by the 50 SA (yellow). Buyers came in this area pushing the price up, which is now trading at the 200 SMA (purple). If Litecoin closes above the 200-day SMA today, the chance of a higher jump from here is higher. So we will be tracking the price movement and possibly opening a Liteccoin buy signal at the 200 SMA after having a few winners after buying Litecoin last month.
LTC / USD