Ethereum, XRP, and Litecoin appear to be consolidating before their next big move

After the recent correction, a significant reduction in volume has tamed volatility in the crypto markets. Most coins appear staggered with limited action, but this could be build up to a major move. This technical analysis will evaluate where Ethereum, XRP, and Litecoin could be headed.

Ethereum

Over two weeks ago, Ethereum broke below the 7-week moving average followed by a significant correction down to the 50-week moving average sitting around $190. It appears the 50-week moving average is now acting as support, preventing the price of ETH from a further drop. Watching whether this support holds or breaks will be critical.

Based on the 1-week chart, a move above the 7-week moving average could signal a continuation of the bullish trend. But, a move below the 50 and 30-week moving average would indicate a further decline.

ETH/USD by TradingView

On the 1-day chart, it is clear that after reaching a high of $363.30 on June 26, Ethereum has gone down to its 61.8 percent Fibonacci retracement level—which is considered the ‘golden’ retracement area.

This Fibonacci retracement level represent a pivotal point for ETH’s trend. Usually, a pullback to this zone is an indication of an exhaustion point. A correction, like the one just experienced, to these levels suggests a rebound. However, a break below the golden retracement level is a signal of trend reversal from bullish to bearish, once again.

ETH USD

The Bollinger bands on the 12-hour chart could help clarify what will happen next. Under this timeframe, the Bollinger bands are squeezing which indicates Ethereum has entered a consolidation phase. Squeezes are typically followed by periods of high volatility. The longer the squeeze the higher the probability of a strong breakout. Thus, the range between $199 and $235 is a reasonable no-trade zone.

A break above $235 could lead to an upswing to the 38.2 percent Fibonacci retracement level. Meanwhile, a break below $199 could take ETH to retest the support given by the 61.8…

Source Link