Ethereum, Litecoin, & Ripple’s XRP Technical Analysis – 21st July

Key resistance levels at play as market rebounds

5 Min Read
Last Updated July 23rd 2021

Ethereum

Ethereum was quite volatile in Tuesday’s trading session. By the end of the day, it was up by about 3%.

It started the day trading along the 23.6% Fibonacci support at $1823.76. This was after a huge selloff on Monday.

However, with the overall market momentum bearish, Ethereum quickly broke through this support, and the selloff accelerated.

By daybreak, Ethereum had dropped hard enough to test multi-month support at $1716.09.

It bounced off this support in early morning trading, but bulls were not strong enough to reverse the losses made earlier.

With bullish momentum weak, bears took back control and pushed Ethereum to test the multi-month support at $1716.09 again.

However, bears failed to push Ethereum through this support a second time. This was an indicator that they were not strong enough.  

This energized buyers to get into the market and saw Ethereum bounce off the $1716.09 support with high volumes. This also saw it establish an uptrend that lasted for most of the day.

However, in late evening trading, bears tried to retake control after bulls couldn’t rally Ethereum high enough to test the 23.6% Fibonacci resistance at $1823.76.  They failed nonetheless, and the market traded in a range for the better part of the evening.

At the time of writing, Ethereum was trading at $1864.80 and was up by 6.49%. It started the day trading in a range, a continuation of the trading pattern of late Tuesday.

Just before daybreak, bears tried to take control of Ethereum but failed. This increased bullish confidence in Ethereum and saw it rally through the 23.6% Fibonacci resistance at $1823.76.

At the time of writing, Ethereum was close to testing the 38.2% Fibonacci resistance at $1890.78. Upside momentum was accelerating too.

ETH/USD 1-hour chart 072121

A glance at the day ahead

In the day, the key level to watch is the 38.2% Fibonacci at $1890.78. If bullish momentum increases and Ethereum breaks this resistance, then it could be a green day for Ethereum.

In such a scenario, the key level to watch would be the 50.0% Fibonacci resistance at $1944.62. If it pushes through this price level, then Ethereum could test prices above $2000 in the day.

However, if bulls fail to push Ethereum through the 38.2% Fibonacci resistance at $1890.78, two scenarios could play out.

The first one is where it trades in a range between the 38.2% Fib resistance and support at $1823.76 on the 23.6% Fibonacci.

The second scenario is one where the 23.6% Fibonacci at $1823.76 fails. In such a scenario, today’s low of $1751.93 would come into play.

If it pushes through this price level, it would indicate that bears are firmly in control and could see Ethereum retest the multi-month support at $1716.09.

If this support fails, then Ethereum could test prices below $1600 in the day. However, if its current price action is anything to go by, this scenario is unlikely.

Ethereum is more likely to range between the 38.2% Fib and the 23.6% Fib or push through the 38.2% Fib resistance in a bullish breakout.

A glance at the technicals

Key support: 23.6% Fibonacci at $1823.76

Key resistance: 38.2% Fibonacci at $1890.78

Litecoin

Litecoin had a pretty mixed day on Tuesday. It closed the day higher by around 2%.

It started Tuesday bearish, a continuation of the bearish trend that started on Monday. Just before daybreak, it pushed through the 23.6% Fibonacci support at $112.20.

This accelerated the bearish momentum, and by midday, Litecoin was trading at key multi-month support at $103.72.

This support held, and Litecoin bounced off it with high volumes. What followed was an uptrend that lasted all through the evening.

At the time of writing, Litecoin was trading at $111.87 and was up 5%.

Litecoin started the day bearish. This was after bulls lacked the momentum to push it to the 23.6% Fib resistance at $112.20.

This saw bears take over in early Wednesday trading. However, they were not strong enough to push Litecoin low enough to retest the multi-month support at $103.72.

With bullish sentiment rising in the broader market, bulls took back control of Litecoin just before daybreak.

This saw Litecoin turn green and has been trending up from that point.  At the time of writing, Litecoin was trading around the 23.6% Fibonacci resistance at $112.20.

LTC/USD 1-hour chart 072121

A glance at the day ahead

In the day, the key level to watch will be the 23.6% Fibonacci resistance at $112.20. If bullish momentum is strong enough to push through it, then Litecoin could be green all through the day.

On the other hand, if bulls are not strong enough to push Litecoin through the 23.6% Fibonacci, then two scenarios could play out.

The first one is where volumes are low. This would see Litecoin most likely consolidate around the 23.6% Fib resistance.

The second one is where bears take control in the broader market. In such a scenario, the key level to watch would be today’s morning low of $105.01. If it’s broken, then Litecoin could test multi-month support at $103.72 in the day.

A glance at the technicals

Key resistance: 23.6% Fibonacci at $112.20

Key support: Multi-month support at $103.72

Ripple’s XRP

Ripple’s XRP was bearish all through Tuesday but made some minor gains towards the end of the day. It ended the day higher by about 0.80%.

XRP started Tuesday in a continuation of Monday’s bearish momentum.  This momentum accelerated after it broke through the 23.5% Fibonacci support at $0.54940.

By early evening, XRP had tested the $0.51609 multi-month support but failed to push through it. This energized bulls and saw XRP make some gains for the rest of the day.

At the time of writing, XRP was gaining and was up by 2.56%. It started the day bearish, but with buying momentum rising in the broader market, bears quickly lost momentum.

Bulls took control just before daybreak, and at the time of writing, Ripple was close to testing the 23.6% Fib resistance at $0.54940.

XRP/USD 1-hour chart 072121

A glance at the day ahead

In the day, the key level to watch will be the 23.6% Fibonacci resistance at $0.54940. If bullish momentum is strong enough to push XRP through this level, then it could be green all through the day.

However, if it fails, then it could either range around this resistance or turn bearish. This will largely depend on volumes and overall market momentum.

If volumes are low, and momentum remains largely bullish, then XRP could consolidate around the 23.6% Fibonacci resistance.

However, if selling volumes increase and the broader market turns bearish, then XRP could be in the red through the day. It could also bring the multi-month support at $0.51609 back into play.

A glance at the technicals

Key resistance:  23.6% Fibonacci resistance at $0.54940

Key support: Multi-month support at $0.51609

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