Ethereum, Litecoin & Ripple’s XRP Technical Analysis – 16th July

Key support levels at play as bearish sentiment persists

Last Updated July 23rd 2021
5 Min Read

Ethereum

Ethereum was bearish on Thursday. By the end of the day, it was down by about 4%.

It started the day trading in a range around the 23.6% Fibonacci resistance at $1992.12. This was in continuation of late Wednesday’s price action.

In the first five hours of the day, bulls seemed to be strong enough to hold Ethereum above this resistance. Just before daybreak, it spiked to a high of $2039.

However, this breakout was quickly rejected, creating a bearish price action setup. The setup was confirmed at daybreak when Ethereum pulled back through the 23.6% Fibonacci resistance with high volumes.

What followed was a bear trend that prevailed up until mid-morning, when bulls tried to retake control.

With market momentum overall bearish, bulls could not push Ethereum high enough to retest the 23.6% Fibonacci resistance.

This reenergized bears in an already bearish market. The result was that by noon, the selloff that had started earlier in the day accelerated. 

Ethereum kept trading lower, but by early evening, the selloff eased up. This was an indicator that after more than 12-hours in the red, Ethereum was getting into oversold territory.

What followed was a consolidation around the $1896.30 price level. Ethereum traded in a range around this price level for the remainder of the day.

Ethereum is currently trading at $1920.09 and is down by 3.98%. It started Friday trading in a range. This is a continuation of the consolidation that started in late Thursday trading.

ETH/USD 1-hour chart 071621

A glance at the day ahead

In the day, the key level to watch will be the multiple-month support at $1863.87. If Ethereum tests and breaks through this support, it would be an indicator that bears are firmly in control.

There would be a chance of Ethereum trading in the red all through the weekend in such a scenario. There would also be a high chance of it testing prices below $1800.

However, if it tests the $1863.87 support but fails to break through it, two scenarios could play out.

The first one is that Ethereum could trade in a range around it all through the day. Such a consolidation could indicate that bearish sentiment is still prevalent, but volumes are in decline as the weekend sets in.

The second scenario would be a bounce off this support and with high volumes. In such a scenario, the key level to watch would be the 23.6% Fibonacci resistance at $1992.12.

If it pushes through this resistance with high volumes, it would indicate that bulls are taking control. In such a scenario, Ethereum could test prices above $2000 in the day. It could also indicate a possibly green weekend for Ethereum.

However, if a bounce off the multi-month support at $1863.87 fails to test the 23.6% Fibonacci resistance or tests it but fails, it would indicate that bearish sentiment is still prevalent.

In such a scenario, the bear trend that has last for the better of the week would most likely continue.

A glance at the technicals

Key resistance: 23.6% Fibonacci at $1992.12

Key support: Multi-month support at $1863.87

Litecoin

Litecoin was bearish all through Thursday. By the end of the day, it was down by about 5%.

Litecoin started Thursday trading with gains. This was a continuation of the bullish momentum that started on Wednesday.

However, momentum was not strong, and within the first two hours of the day, it hit resistance at $131.92 on the 38.2% Fibonacci.

This resistance held, and Litecoin dropped for about two hours. Just before daybreak, bulls tried to retake control and push Litecoin through the 38.2% Fib resistance a second time. 

This time, the upside push was rejected and with high volumes. What followed was a selloff that lasted until mid-morning, when Litecoin found some support at $128.12 on the 23.6% Fibonacci.

It ranged above this support for a few hours as bulls tried to retake control.  However, with broader market momentum bearish, Litecoin broke through this support with high volumes.

What followed was a selloff that saw it test multi-month support at $121.96. This support held, and Litecoin bounced off it in the last four hours of Thursday trading.

Litecoin is currently trading at $125.07 and is down by 4.2%. It started Friday trading in the green, continuing the momentum it built in late Thursday trading.

However, by the second hour of the day, bears were retaking control. It is an indicator that bearish sentiment is still strong, despite the bounce off the $121.96 support.

LTC/USD 1-hour chart 071621

A glance at the day ahead

In the day, the key level to watch is the multi-month support at $121.96. If bears take control and push Litecoin through it, then it could be a red weekend.

However, if this support holds, then two scenarios could play out. First, if volumes are low, then Litecoin could consolidate around it all through the day.

On the other hand, if it bounces off this support with high volumes, then the 23.6% Fibonacci resistance at $128.12 would come into play.  If bullish sentiment is strong enough to push it through this resistance, Litecoin could be green all through the day and possibly, the weekend.

A glance at the technicals

Key resistance: 23.6% Fibonacci at $128.12

Key support: Multi-month support at $121.96

Ripple’s XRP

Ripple’s XRP was bearish all through Thursday. By the end of the day, it was down by about 4%.

It started the day trading in a range, a continuation of late Wednesday’s price action. This price consolidation was happening above the 23.6% Fibonacci at $0.61457, which was now intra-day support.

However, within the first three hours of trading, this support gave way. What followed was a sell-off that lasted for the better part of the day.

 This selloff saw XRP come close to testing multiple-month support at $0.58535 by late evening. Failure to hit this support was an indicator of bearish exhaustion. 

This energized bulls and saw the price start trending up, for the remaining hours of the day.

XRP is currently trading at $0.5971 and is down by 3.26%. It started the day bearish after bulls failed to push it to the 23.6% Fib resistance in late Thursday trading.

XRP/USD 1-hour chart 071621

A glance at the day ahead

In the day, the key level to watch is multi-month support at $0.58525. If bears manage to push XRP through this level, then it could be bearish all through the weekend.

However, if this support holds, then XRP could either consolidate or bounce off it in a bullish reversal.

If it bounces off this support with high volumes, it will bring the 23.6% Fib resistance at $0.61457 into play.

If buying momentum is strong enough to push XRP through this resistance, it could be bullish throughout the day and possibly the weekend.

A glance at the technicals

Key resistance:  23.6% Fibonacci at $0.61457

Key support: Multi-month support at 0.58535

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