On Friday Litecoin kickstarted a phenomenal rally which led the entire market higher. Can Ethereum continue to gain on its own or will Bitcoin and Litecoin price action mirror Ethereum’s future course?
Ethereum 00 and Litecoin both staged amazing rallies over the past few days. Bitcoin’s strong upside move shifted it above many overhead resistance levels and it seems both Ethereum and Bitcoin both saw a double bottom (ETH @ $100). Now a growing number of analysts are beginning to forecast whether the entire market has bottomed.
The 5MA is beginning to cross below the 10MA as ETH consolidates in preparation for its next move. The altcoin still trades above the 50MA and in spite o the recent pull back the 12EMA remains crossed above the 26EMA on the 4hr chart and ETH looks to be setting a higher low above the exponential resistance.
The Stoch has turned down from overbought territory while the RSI reflects ETH current state of consolidation as it has flatlined in bullish territory. The MACD also remains bullish and at the time of writing the CMF and order book show the current price action biased toward bulls so it seems traders believe the rally still has legs.
Obviously, anyone who has been looking at a cryptocurrency chart over the past year will remember that Bitcoin’s price action remains an auxiliary threat to nearly every altcoin except Litecoin and Binance Token for the time being. Meaning, while any combination of technical indicators might flash bullish for ETH, a sharp pullback in BTC price is bound to be curtains for the current set up.
The number of shorts continues to drop, a pattern also observed on the BTC-USD shorts chart which shows bearish interest dropping to a 2 month low.
ETH remains bullish above the 26ema ($114) and below this point, ETH could drop to the 100 MA at $112 but at the time of writing the order book shows substantial purchasing interest at $114 so there is the possibility of a bounce at $114 for those looking for a quick scalp.
Will ETH consolidate at the 26EMA ($114) and continue upward or has the current rally run out of steam. All comments are welcome!
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Images courtesy of Shutterstock, Trading View. Market data sourced from Bitfinex
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