- Main Cryptocurrencies are starting the week with extended falls across the board after altcoins fell during the weekend
- US regulator’s decision on Ethereum is anxiously awaited
Altcoins broadly sold off over the weekend and that is now translating into the main Cryptocurrencies, experiencing losses across the board to start the week. BTC/USD has awakened in Europe with falls over 3.5%, while Ethereum is retracing around 6%.
ETH/USD 4H chart
Ethereum is falling heavily at the start of the European session. ETH has led the rises over the last weeks and is natural that its retracements are bigger than Bitcoin’s ones.
We shouldn’t forget the Ethereum-Bitcoin ratio when conducting our daily trading, as both are assets that act as base currency for hundreds of Altcoins, and choosing one or the other might heavily affect future results. Right now, ETH/BTC is resting around 0.07890, just above the bullish trendline that has guided ETH outperforming relatively BTC. You can track ETH/BTC here.
ETH/USD is trading around $732.82 after leaving a relative high at $834.16 during the weekend. Ethereum has broken below the 50-EMA and is now heading down to the $700-$720 area, with a strong support in the $680 area that should be respected to avoid going back to bearish outlook in the mid-term. On the upside, ETH/USD needs to recover the lost levels at $755, $800 before heading to new highs, mainly the aforementioned $834.16.
MACD in the Ethereum 4-hour chart shows a clearly bearish profile, nearing the mid-area of the indicator, where it will probably find its support. We should widen the time frame of the chart to gather more information about the mid-term price action.
Directional Movement Index in the same chart is confirming the weakness and sellers have taken control of the situation. D- is moving above ADX, so the move might have enough room over the time. This could change quickly depending on the decision of the US regulator about Ethereum’s financial status.
BTC/USD 4H chart
Bitcoin is taking a breath in its downwards trajectory around $9275, now back to the breaking point of the Diamond formation that signaled the first attack to the $10000 mark. Technically, this is a normal development of level-testing. We should take a look at the first meaningful support at $9151, a bit above the trendline located at $9000. Losing that level would be very bearish for Bitcoin’s mid-term price action.
On the upside, strong resistance at $9615, which, if broken, would take the price back to the round $10000 figure and a vital level to consolidate at $10100.
MACD in the Bitcoin 4-hour chart is showing an indicator completely above the 0 line, acting as a technical support. Looking at the bearish opening of the indicator, we might conclude that there is some bearish potential if these supports fail. If that turns to the upside, the structure would support moves with notable volatility.
Directional Movement Index in the same 4-hour chart shows a similar profile to the Ethereum one, with buyers on retreat and sellers taking back control. D- is moving above an ADX that is also accelerating and is making possible that the current move might last for a while.
XRP/USD 4H chart
Ripple has been experiencing important falls over the last two days, just as other altcoins. XRP/USD is now trading below bullish breaking points of last week, but still above the trendline that provided the signal. Ripple is trading around $0.8140, leaving at $0.85 the 100-SMA and 50-EMA lines. Main support is at $0.80, which shouldn’t fall if it wants to keep its bullish outlook. If the movement lacks strength and continues to the downside, next support is at $0.7682 and further down, at $0.7076. On the upside, a very strong resistance between $0.85 and $0.86, matching price action barriers and moving averages already mentioned.
MACD in the Ripple 4-hour chart has had more time to develop the bearish movement and is now trading below the 0 line, although the signal is still in positive territory. The current profile is proposing a lateral consolidation movement rather than a bearish continuation move.
Directional Movement Index in the same chart shows the sellers in control. They are notably over the ADX that has reacted to the bearish movement with an increase of the trend signal. A bullish movement for a simple return to the average looks possible, but it would have a bearish base.
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