The crypto market has been on a bullish run during most of October, in line with the improved sentiment. BITCOIN broke above the all-time high of $65,000, which was a major psychological barrier, improving the sentiment further and pulling the rest of the market up with it. But, the last few trading sessions have been negative for cryptocurrencies, with Bitcoin retreating below $60,000. Ethereum and Litecoin have also retreated, and they have entered the neutral zone again, so this might be the beginning of a bearish phase for them, let’s have a look.
Ethereum Daily Chart Analysis – ETH Fails at ATH of $3,380
falls below $4,000
ETH/USD falls below $4,000 again
Ethereum has been showing strength since the end of July, when the major bearish period ended in the crypto market. It even brushed off the pullback in September and progressed higher, moving above the big round level at $4,000, which is an important psychological level for Ethereum.
Moving averages have been doing a good job as support indicators, and ETH/USD has challenged the all-time high (ATH) at $3,380. Buyers failed to take that level out, which showed that it remains a strong resistance zone, although the price was not retreating lower – in fact, it was trading close to that level.
Today, we are seeing a retreat in the market, and Ethereum has fallen below $4,000. After the bullish momentum and the rejection at the ATH, Ethereum might enter a bearish retracing period before the next bullish leg. If that’s the case, we will look to buy this crypto at the 100 SMA (green) above $3,000, but let’s first see if sellers are strong enough to send the price down there.
Litecoin Daily Chart Analysis – Is the Bullish Momentum Over?
Will the 200 SMA hold as support for Litecoin?
As we have often mentioned recently, Litecoin was trading in a range below the 200 SMA (purple) on the daily chart for quite some time. The first two breaks above it turned out to be fake-outs as the price returned below them pretty fast, while this time the break seemed more sustainable.
This moving average has even turned into support during the last few days, confirming the breakout. The price started to bounce off this level, but today we saw a quick bearish reversal in the crypto market, after a $500 million Bitcoin liquidation. So, we’re back below the 200 SMA, which would be quite bearish for Litecoin, but the price is beginning to pull back up now, and if the daily candlestick closes above the 200 SMA, that would be a positive sign. Otherwise, LTC/USD might fall to $150.
