Ethereum, Litecoin, & Ripple’s XRP Technical Analysis – 27th May

It’s a bearish day for crypto majors. Failure to push through key pivot points could see them breach key support levels

5 Min Read
Last Updated July 23rd 2021

Ethereum

Ethereum gained by 7.76% on Wednesday to close the day at $2818.21. This was after a slight dip in Tuesday’s trading when it closed the day at $2617.63.

It was a relatively mixed day that saw Ethereum rally in the morning and hit a high of $2909.21. It then had a slight correction in the afternoon, and dipped to a low of $2666.38, before recovering for the better part of the evening.

Ethereum’s gains in the morning came after it held above two key support levels namely: the 38.2% Fibonacci retracement level at $2562.07, and the 200-day moving average at the same price level.

The afternoon reversal followed Ethereum’s failure to hold above key resistance on the 50% Fibonacci retracement level at $2818.21.  The correction saw it drop to $2704.14, but it steered clear of the 38.2% Fibonacci support level.

Holding clear above the 38.2% support, Ethereum regained some upside momentum for the rest of the evening.

At the moment of writing, Ethereum is down by 4.12% and is trading at $2723.73. It lost momentum in early morning trading after it failed to hold above the 50% Fibonacci retracement level.

It has not yet tested any support or resistance levels in early morning trading.

ETH/USD 1h Chart

A glance at the day ahead

Ethereum would need to push through the $2895.52 pivot for it to test the next key resistance at $3058.27. This is at the 61.8% retracement level.

For it to break through the $2895.52 pivot level, the broader market would need to rally.

Without any major price movements in the broader market, there is a good chance that Ethereum will not break through the 50% Fibonacci resistance level at $2818.21.

In the event that the entire market rallies and Ethereum pushes through $3058.78, then ETH would be in a breakout. The next resistance level to watch in such a scenario would be $3534.37.

However, if the broader market turns bearish in the day, and Ethereum breaks the 38.2% Fibonacci support level, then $2255.15 would be the next key support level. This is a major support level on the 23.6% Fibonacci.

This would also mark the beginning of a bear trend for Ethereum that could possibly see it test new lows for the next couple of days.

There seems to be strong support at $2562.93 though. Without any major movements in the broader market, this support could hold in the day.

Review of the technicals

Key support: $2562.07

Pivot: 2895.52

Key resistance levels

50% Fibonacci: $2818.21

61.8% Fibonacci: $3067.82

Litecoin

Litecoin was a big gainer in Wednesday trading and edged higher by 10%. This was after a relatively mixed day on Tuesday. It closed the day at $194.60.

After Tuesday night’s correction failed to break key support on the 23.6% Fibonacci retracement, bulls took charge of the market.

This momentum saw Litecoin rally for the better part of the morning. This Momentum saw Litecoin push through key resistance at $194.60 on the 38.2% Fibonacci retracement.

However, without any support from the broader market, Litecoin could not hold above this resistance. This saw it correct slightly for the better part of the afternoon.

Without any selling pressure from the broader market, Litecoin was able to trade along the 38.2% resistance level for the better part of the day.

At the time of writing, Litecoin has dropped by 6.36% to trade at $188.66. A low-momentum start to the day saw Litecoin fail to break past the $194.68 resistance in early morning trading.

LTC/USD 1h Chart

A glance at the day ahead

Litecoin needs to break the $203.29 pivot for the $218.84 resistance level to be tested in the day.

For such a significant price rally to happen, Litecoin needs support from the entire crypto market.

Without any price rally in the broader crypto market, Litecoin is likely to trade in a range for the better of the day. The 38.2% resistance is key resistance at $195.52, with the 23.6% Fibonacci acting as a key support level at $166.25.

In the event that there is a market-wide selloff, Litecoin could break the $166.25 support level in the day. This would mark a short term bearish trend for Litecoin, one that could extend for a couple of days.

However, failure to break through this level in the event of a market-wide selloff would be an indicator of strong buying pressure around this level.

Review of the technicals

Key support: $166.25

Pivot: 203.29

Key resistance levels

38.2% Fibonacci: $194.60

50% Fibonacci: $218.84

Ripple’s XRP

Ripple’s XRP gained by 7.145% in Wednesday’s trading session. It ended the day’s trading at $1.0122.

After a correction on Tuesday evening failed to push Ripple’s XRP through key support at $0.9005 on the 23.6% Fib, bulls took charge. All through the morning, XRP gained until midday, when it hit key resistance at $1.0541 on the 38.2% Fibonacci.

Ripple’s XRP failed to push through this resistance. With little upside momentum in the broader market, XRP declined for the better part of the day. However, the downtrend was relatively weak, and XRP did not test support for the better part of the day.

At the moment, Ripple’s XRP is down by 6.24%. It failed to push through key resistance at $1.0541 on the 38.2% Fibonacci.

XRP/USD 1h Chart

A glance at the day ahead

Ripple's XRP would need to test the $1.1681 pivot for there to be a clear upside break. Such a break would leave open the possibility of testing the next major resistance level at $1.1799.

For XRP to break through the pivot level, it would need support from the broader crypto market.

Without any major run-up in price on the broader market, XRP’s upside would be capped by Wednesday’s resistance at $1.0541.

If the broader market rallies and XRP breaks through $1.0541 resistance at any point in the day, $1.799 would be the next resistance to watch.

On the other hand, a retest and failure to break through $1.0541 would leave the door wide open for a downside break. In such a scenario, $0.9005 support on the 23.6% Fibonacci would be the level to watch.

Without an increase in selling pressure in the broader market, the $0.9005 support would hold.

However, an increase in market-wide selling pressure could lead to a $0.9005 support level breach. It would also mark the beginning of a short-term correction that could last a few days.

Review of the technicals

Key support: $0.9005

Pivot: $1.1681

Key resistance levels

38.2% Fibonacci: $1.0541

50% Fibonacci: $1.1799

Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.