Ethereum & Litecoin set the path for new highs

From a technical perspective, we expect that the new compression trend will soon break and the bullish path passes through the previous compression point around $58,000. If it breaks it, there is more way for the current all-time high level at $64,000, which must be covered through new capital in the market or through new profits generated from the current altseason.

On the other end, we believe that the $50,000 point has stood strong enough to prove that there is a need for a massive sell-off to break down and start a major bearish path that will set the clock back to zero for a new bullish cycle.
The trading volumes made a small jump during the week, showing that there is enough circulation in the market to prove the market moves. The moving averages crossed each other, forming a “Golden Cross” to enrich positive momentum in the price formation.

In the short-term diagram, we can observe that the market is trying to recover from the bearish drop, by making a jump towards the compression point around $56,000, which will determine the next period for the coin.

Indicators

MACD index passed on the positive area, creating more positive momentum for the current price formation process. The compression status is better evidence in the RSI index as its value lays around 50.

Ethereum / US Dollar

The previous week was extremely good for the Ethereum market as its price reached new all-time high levels at $3,500. The new peak was achieved after several positive incidents took place during the last week, where many institutions saw with positive eye Ethereum’s capabilities.

The most prolific out of these events was European Investment Bank’s decision to issue a bond worth €100 million in Ethereum’s public blockchain with assistance from major European banks like Banco Santander and Societe Generale. The last one issued another bond in Ethereum’s blockchain, establishing its close relationship with the cryptocurrency.

The market has reached a price exploration mode with no resistance to be known in the short-term future. The support levels in this period lay around $2,500, where there is enough market depth accumulated from the previous bullish period. We must remember that the market was trying to reach new high levels around $2,500 and there was a major achievement, showing evidence that the market was trying to push towards the newly-established levels.

The trading volumes have skyrocketed during the last week, indicating that the investors have a new interest in the market and are willing to take more risks by entering it. The moving averages have established a positive position that shows a positive stance in the market for the current period.

Indicators

MACD index is laying in the positive and in high values, indicating that the market has established a firmly positive turn that might help the market to grow even more. The RSI index remains above the value = 70, indicating that the asset is considered to be “overbought” and we might expect a minor correction in the market.

Ripple / US Dollar

Ripple has developed a similar price formation process with Bitcoin, showing a lot of hops in the upper levels, above $1.40. The price variance between $1.60 and $1.40 is considered to be “insignificant”, especially if we look in the near past where the range of the prices was settled between $0.20 and $1.80.

The current situation seems to be a compression status at this moment, showing that the market will try to establish a standard point around those levels before trying to reach higher levels. There are no major support levels in the new price levels above $1.00, indicating that a sudden turn of events will bring the market in an unfavorable position.

We expect that the market will try to accumulate as much depth as it could, to strengthen its position in the high levels before trying to reach new higher levels. The trading volumes have been significantly higher than in the previous period, indicating that the market has passed to new levels. The moving averages crossed each other and formed a “Golden Cross”, which contributes positively to the price formation.

Indicators

MACD index has remained near value = 0, showing that the market has not a specific direction about where to funnel its momentum. The RSI index lays around value = 60, indicating that there is a positive background in the price formation for the short-term future.

Litecoin / US Dollar

The all-time high levels have been reached in Litecoin’s case, making the price reach $360 for the first time in its history. The positive path was made possible through the altcoin boom that happened over the last weeks.

This trend enabled different, “weaker” altcoins to reach new high levels and deliver profits to their investors. From a technical point of view, the market has entered a price exploration mode with no evident resistance and no clues for where the rise will stop. On the other hand, the first minor support level lays at $300, the previous all-time high level, and the first major support level at $230.

The trading volumes have skyrocketed during the last month, making Litecoin revive from its previous condition when no serious investor was interested in putting money in it. The moving averages formed a “Golden Cross”, establishing a positive background for the coin’s short-term future.

Indicators

MACD index has managed to sustain its positive position during the last week and contribute to the new all-time high level’s achievement. The RSI index continues to stay above the “overbought” line, indicating that we might observe a correction if the price doesn’t build enough market depth.

Bitcoin Cash / US Dollar

Another exciting jump was evident in the Bitcoin Cash market, where its price jumped from the $1,000 point to $1,500 in just a day, accumulating profits of around 50 %. The price corrected today at $1,400 and its sole focus at this moment should be to bring more capital to the higher levels.

Accumulating more capital will enable the market to build stronger support points that don’t let the market slip at lower points at once. We expect that this would be a difficult task but nothing is impossible in the crypto space.
The trading volumes have made huge jumps during the last period, showing that investors have re-establish their interest in the coin. The moving averages have sustained a positive position, which contributes to the current price formation.

Indicators

MACD index has remained in the positive area, bringing more positive momentum in the price formation process. The RSI index has moved at value = 70, indicating that the price might face a minor correction from this point and on.

Correlations

Bitcoin / Ethereum = 0.53 (+ 0.67), Bitcoin / Ripple = 0.92 (+ 0.03), Bitcoin / Litecoin = 0.61 (- 0.12), Bitcoin / Bitcoin Cash = 0.60 (+ 0.56)
The correlations went all the way around, especially for Ethereum and Bitcoin Cash, showing that the market has made a severe try to move in the same direction. Although Ethereum has set a different path during the last period, we can observe that it moves in similar positions with Bitcoin, making its correlation rise and get established in the medium correlation zone. Litecoin and Bitcoin Cash have sustained a medium correlation with Bitcoin, making the second one (Bitcoin Cash) move in positive ways towards new high levels. On the other hand, Ripple has been the only cryptocurrency that has remained in the strong correlation zone, proving that the market has followed Bitcoin’s trends, at least for the last 3 weeks.

Key Notes For Today

• Bitcoin establishes a new compression point around $56,000
• Ethereum sets a new all-time high level at $3,500
• Ripple is making hops around $1.60
• Litecoin reached a new all-time high level at $360
• Bitcoin Cash made another significant jump at $1,500 before correcting at $1,400