On Friday, Litecoin launched a phenomenal rally that took the entire market higher. Can Ethereum continue to win on its own or do Bitcoin and Litecoin's promotions reflect Ethereum's future course?
Ethereum Price: Market Overview
ether 00 and Litecoin have been doing amazing rallies in the last few days. The strong upward movement of Bitcoin pushed them across many levels of resistance, and both Ethereum and Bitcoin both saw a double bottom (ETH @ $ 100). Now, a growing number of analysts are forecasting whether the entire market has bottomed out.
The 5MA is starting to cross the 10MA, while the ETH is consolidating in preparation for the next step. The Altcoin is still trading above the 50MA and despite the recent retreat, the 12EMA remains above the 26M on the 4-hour chart and the ETH seems to set a higher low above the exponential resistance.
The Stoch has rejected the overbought area, while the RSI reflects the current consolidation status of the ETH as it has fallen in the bullish area. The MACD continues to be bullish and at the time of writing, the CMF and the order book show the current price movements against bulls, so traders believe the rally still has legs.
Anyone who viewed a cryptocurrency chart last year will remember that Bitcoin's pricing movement poses an additional threat to almost any Altcoin, with the exception of Litecoin and Binance tokens. This means that any combination of technical indicators for ETH could appear bullish, but a strong pullback in the BTC price is certainly an obstacle to the current setup.
ETH-USD short chart
The number of short positions continues to decline, a pattern also seen in the BTC USD short chart showing a downward trend in interest rates to a 2-month low.
The ETH remains bullish above the 26th (US $ 114), and below that point, the ETH could drop to 100 MA at $ 112, but at the time of writing the order book, there is considerable buying interest at $ 114 looking for a fast scalp.
Will ETH consolidate at the 26EMA (US $ 114) and continue to climb or is the current rally exhausted? All comments are welcome!
[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for analysis are provided by TradingView.]
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Images courtesy of Shutterstock, Trading View. Market data comes from Bitfinex
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