Ethereum Needs Incentive for Growth

The duality that has been defying trading in the cryptocurrency segment for more than a week now is still present, with Bitcoin following an entirely different path compared to the major altcoins. While the most valuable coin has gained around 25% off its recent lows, while the rest of the market is not far off the lows set in late-June and early-July.

Bitcoin ran into strong resistance near the $8400 level that we pointed out on Monday, and as the coin became overbought form a short-term perspective a correction possibly already started. Our turned model got downgraded to neutral in the case of Bitcoin, while the rest of the majors are still on sell signals following last week’s failed breakouts. The total value of the market briefly topped $300 billion with the help of BTC’s 2-month high, but as the depth of the rally is missing, the move remains fragile.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is in a short-term uptrend and it likely hit a new swing high near $8400 after the second wave of the advance this week. The coin is above the key $7650-$7800 zone, and should the correction respect that zone, the rising trend will likely continue. The weakness in altcoins still warrants caution here, but after a normal correction, another short-term buy signal could be triggered by Bitcoin. Further support is found near $7350 and $7000 while the next resistance level is ahead at $8700.

Technicals Unchanged for Altcoins

XRP/USDT, 4-Hour Chart Analysis

Despite the active trading in Bitcoin, and the ongoing short-term bullish trend, the major altcoins are in very stable and bearish technical setups. The trading ranges that developed in the wake of the June lows are mostly still intact and although some of the coins have shown some strength a significant leadership is clearly missing, and that still points to, at least, a test of the lows.

ETH/USD, 4-Hour Chart Analysis

Ethereum tried to rally towards the $500 level together with BTC yesterday, but yet again, sellers stepped in and pushed back the coin below $475, inside the weekend trading range. A weak rising trendline is still intact within the broader trading range between $400 and $500. The coin still bearish from a short-term perspective, with primary support found at $450, further levels at $420, $380, and $360.

XMR/USDT, 4-Hour Chart Analysis

Monero has been among the encouraging coins as of late, but so far, XMR remained stuck below the $150 level, still on a short-term sell signal in our trend model. A move above resistance would be a very positive sign, but for now, we traders shouldn’t enter new positions. Support is found at $125, 14120, $110, and $100, while further strong resistance is ahead at $175.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.


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