Ethereum has been showing signs of strength since the major bearish period on the crypto market ended in late July. It gained around 250% as the price climbed above $4,000, although buyers couldn’t hold the gains above that major level and in September the crypto market retreated lower again.
Ethereum fell below $3,000 but moving averages have been doing a great job as support indicators for this cryptocurrency, first the 50 SMA (yellow) on the daily chart, then the 100 SMA (green) took over. This moving average held as support during the end of September and in October the price has turned bullish again.
ETH/USD
The $4,000 level held for a little, but the rejection was weak, suggesting that the buying pressure was strong and eventually ETH/USD broke above $4,000. Today we saw another bullish attempt earlier, which again showed resilience, while Bitcoin and most of the market were retreating lower.
Buyers tested the May high at $4,380 today, but that resistance level held in the first attempt. Now, the $4,000 level should turn into support and if we see a bullish reversing signal as the price gets down there, then we might open a buy Ethereum signal. Mark Cuban commented that “Ethereum has the most upside as a crypto investment” and Ethereum 2.0 should prove him right, which should also keep the bullish momentum going for this crypto.
Litecoin Daily Chart Analysis
Will the 200 SMA turn into support for Litecoin?
Litecoin was trying hard to break above the 200 SMA (purple) on the daily chart as shown on the image above, having tested it for about two months. There were two breaks above it, but the price turned below it pretty quickly, showing that buyers were not confident in keeping the price there.
This time they seem more confident after LTC/USD surged around 15% higher, breaking above the 200 SMA as well as the $200 level. Now the price has retreated lower, as Litecoin trades right at $200. The 200 SMA which stands at around $190 should turn into support for Litcoin, so we might go long here as well, if we see bullish reversing signals at the 200 SMA.
LTC/USD