ETHUSD: Bearish Engulfing Pattern Below $2,087
Ethereum was unable to sustain its bullish momentum last week, and after touching a high of 2,084 on 23rd May started to decline heavily against the US dollar.
We can see a strong bearish momentum this week and this is putting downward pressure on the prices of Ethereum below the 1,850 handle in the European trading session today.
We can see the formation of a major bearish trend line today on the hourly chart, and the pair is poised to decline further given the weak investor sentiments.
The prices touched an intraday low of $1,817 in the Asian trading session and an intraday high of $1,970 in the European trading session today.
We can clearly see a bearish engulfing pattern below the $2,087 handle which is a bearish pattern and signifies the end of a bullish phase and the start of a bearish phase in the markets.
ETH is now trading just below its pivot level of 1,860 and moving into a strong bearish channel. The price of ETHUSD is now testing its classic support level of 1,686 and Fibonacci support level of 1,819 after which the path towards 1,700 will get cleared.
The relative strength index is at 21 indicating an OVERSOLD market, and the possibility of a pullback action.
The StochRSI and Williams percent range are indicating an oversold level which means that the prices are due to correct upwards in the short-term range.
ALL of the technical indicators are giving a STRONG SELL market signal.
All of the MAs are giving a STRONG SELL signal, and we are now looking at the levels of $1,700 to $1,650 in the short-term range.
ETH is now trading below both the 100 hourly and exponential MAs.
- A bearish reversal seen below the $2,087 mark
- The short-term range appears to be strongly BEARISH
- The daily RSI is below 50 at 21 indicating a bearish market
- The average true range is indicating HIGH market volatility
Ether: Bearish Continuation Seen Below $2,087
ETHUSD is now moving into a strong bearish channel with the prices trading below the $1,850 handle in the European trading session today.
We can see that the commodity channel index is at an oversold level now, which means that a potential bullish reversal is possible anytime in the markets.
The price of Ethereum may continue to decline further against the US dollar due to the global risk scenario and the flight towards the safe haven assets like the US Dollar and GOLD.
The key resistance levels to watch are $1,941 and $2,260, and the price of ETHUSD needs to cross these levels for a potential Bullish reversal.
ETH has declined by 6.91% with a price change of 136$ in the past 24hrs, and has a trading volume of 15.808 Billion USD.
We can see an Increase of 13.21% in the total trading volume in the last 24 hrs which appears to be normal.
The Week Ahead
Global investors are now looking to liquidate their holdings in the cryptocurrencies, which is the main reason for the continuous fall in the price of Ethereum. The ETH 2.0 planned upgrade has also not been activated, leading to concerns about the future of Ethereum and its market value.
The immediate short-term outlook for Ether has turned strongly BEARISH; the medium-term outlook has turned BEARISH; and the long-term outlook for Ether is NEUTRAL in present market conditions.
This week, Ether is expected to move in a range between $1,600 and $1,800, and next week, it is expected to enter into a consolidation phase above the $1,800 level.
Technical Indicators:
The Williams percent range: at -96.16 indicating an OVERSOLD level
The moving averages convergence divergence (12,26): at -25.11 indicating a SELL
The ultimate oscillator: at 33.56 indicating a SELL
The rate of price change: at -6.37 indicating a SELL
LTCUSD: Double Top Pattern Below $73
Litecoin was unable to sustain its bullish momentum last week, and after touching a high of 73.80 on 23rd May started to decline heavily against the US dollar.
The ongoing bearish momentum pulled down the price of Litecoin below the $65 handle touching a low of 63.08 in the European trading session today.
The selling pressure continues and we are expecting more downsides in the levels of Litecoin towards the levels of $60 and $55 this week.
We can clearly see a double top pattern below the $73 handle which is a bearish pattern signifying the end of a bullish phase and the start of a bearish phase.
Litecoin is now trading below its 100 hourly simple moving averages and 200 hourly exponential moving averages. The price of LTCUSD is just below its pivot level of 64.43.
The relative strength index is at 18 indicating OVERSOLD markets, and the possibility of a pullback action this week.
The prices of Litecoin continue to remain below ALL of the moving averages, which are now giving a STRONG SELL signal at current market levels of 63.80.
The Williams percent range and commodity channel index are indicating an oversold level, which means that the prices are expected to correct upwards soon.
The short-Term outlook for Litecoin has turned strongly BEARISH.
- ALL of the technical Indicators are giving a STRONG SELL signal
- A bearish continuation below the $73 level
- Consolidation has started above the $62 handle
- The average true range is indicating HIGH market volatility
Litecoin: Bearish Continuation Below $73
We can see the formation of a consolidation pattern in Litecoin above the $62 handle which is expected to stabilize the downfall.
The price of LTCUSD is now facing its classic support level of 59.26 and Fibonacci support level of 63.21, after which the path towards $55 will get cleared.
The daily RSI is printing at 35 which is indicating a bearish market and the continuation of the downwards trend.
LTC has declined 8.29% with a price change of -5.76$ in the past 24hrs, and has a trading volume of 0.565 billion USD.
Litecoin’s trading volume has increased by 5.05% compared to yesterday which appears to be normal.
The Week Ahead
This week, we are looking at the support level of $54 and the shift towards the consolidation channel above the $60 handle. If the price remains above these levels, we may see some bullish moves in the next week.
The short-term outlook for Litecoin has turned strongly BEARISH; the medium-term outlook is BEARISH; and the long-term outlook is NEUTRAL at present market conditions.
This week, we are looking at levels of $55 to $60, and next week, Litecoin is expected to consolidate at levels above $60.
Technical Indicators:
The relative strength index (14 days): at 19 indicating an oversold market
The moving averages convergence divergence (12,26): at -1.142 indicating a SELL
The rate of price change: at -6.598 indicating a SELL
The ultimate oscillator: at 38.14 indicating a SELL
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