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

Key support levels at play after late Monday’s market correction

Last Updated July 27th 2021
5 Min Read

Ethereum

Ethereum had a pretty bullish day yesterday and closed higher by about 8%. 

It started the day bullish, but with low trading volumes. Within the first two hours of the day, it had broken through the 38.2% Fibonacci resistance at $2161.15.

It kept edging higher, but the real breakout came just before daybreak. Volumes increased, and Ethereum shot up, easily pushing through the 23.6% Fibonacci resistance at $2265.51.

This increased buying momentum and saw Ethereum rally for the better part of the day. By late evening, it was trading at $2432.81, a key multi-month resistance.

However, by the time it got to this price level, broader market momentum was turning bearish. 

What followed is that Ethereum was rejected sharply at the $2432.81 multiple-month resistance.

It dropped hard, and by the end of the day, had tested, and broken, the 23.6% Fibonacci at $2265. 51, which was now intra-day support.

At the moment, Ethereum is trading at $2179.42 and is down by 5.50%. It started Tuesday trading bearish, a continuation of the bearish momentum that started in late Monday trading.

By daybreak, downside momentum was accelerating, and Ethereum was trading on the 38.2% Fibonacci at $2161.15. This was now intra-day support and a price level that would determine the direction that Ethereum could take in the day.

ETH/USD 1-hour chart 072721

A glance at the day ahead

In the day, the key level to watch will be the 38.2% Fibonacci support at $2161.15.

If bearish sentiment rises and this support level is broken, it would be an indicator that the bullish momentum that characterized most of Monday trading is gone.

In such a scenario, the next key level to watch would be the 50.0% Fibonacci support at $2078.33.

If this is broken, prices below $1900 could be possible in the day, depending on volumes.

On the other hand, if the 38.2% Fibonacci support holds, then volumes, and broader market momentum would come into play.

If volumes are low, and the broader market trades sideways in the day, Ethereum could range around this price level.

Such a scenario could see Ethereum oscillate between the 38.2% Fibonacci on the lower side and the 23.6% Fibonacci resistance at $2265.51 on the upper side.

However, in the event that the broader market turns bullish, and buying volumes increase, then the 23.6% Fibonacci resistance would come into focus.

If bulls manage to push Ethereum through it, and with high volumes, then there could be a possibility of Ethereum retesting the $2432.81 multi-month resistance in the day.

If bulls manage to push Ethereum through $2432.81, then there could be a possibility of it testing $3000 within the day, or in the course of the week.

A glance at the technicals

Key resistance: 23.6% Fibonacci at $2265.51

Key support: 38.2% Fibonacci at $2161.15

Litecoin

Litecoin was pretty bullish for the better part of Monday. However, like the rest of the market, it experienced a steep correction in the later hours of the day.

By the end of the day, Monday, Litecoin was still up by about 7%.

Litecoin started Monday trading bullish, albeit with low volumes. However, just before daybreak, volumes increased sharply.

This increase in buying momentum saw Litecoin push through the 38.2% Fibonacci resistance at $126.41, and with high volumes.

It kept edging higher and by daybreak, had pushed through the 23.6% Fibonacci resistance, and kept gaining. Momentum was so strong that Litecoin came close to testing multi-month resistance at $140.42.

However, this did not happen as volumes died down in the early morning hours. This saw it trade in a range below the multi-month resistance for the better part of the day.

Towards the end of the day, buying momentum saw Litecoin test this resistance but was quickly rejected.  This was due to a sudden increase in bearish momentum, in the broader market.

By the end of the day, Litecoin had dropped enough to test and push through, the 23.6% Fibonacci. This was now intra-day support at $131.76.

At the time of going to press, Litecoin was trading at $127.94 and was down by 6.25%. It started Tuesday trading bearish, a continuation of the downside momentum that started in late Monday trading.

It has been trending lower, and by daybreak, was close to testing the 38.2% Fibonacci at $126.41, key intraday support.

LTC/USD 1-hour chart 072721

A glance at the day ahead

In the day, the key level to watch will be the 38.2% Fibonacci support at $126.41.

If bears take control and push Litecoin through this support, then the 50.0% Fibonacci support at $122.08 would come into play. If broken, then Litecoin could test prices below $120 in the day.

However, in the event that the 38.2% Fibonacci support holds, then broader market dynamics would come into play.

If the broader market is directionless in the day, then Litecoin could trade in a range between the 38.2% Fibonacci support at $126.41, and the 23.6% Fibonacci resistance at $131.76 as an upper limit.

However, if buying volumes increase in the broader market, and Litecoin pushes through the 23.6% Fib at $131.76, then the next level to watch would be multi-month resistance at $140.42.

If this price level is broken, then Litecoin could be in the green all day, and possibly, the whole week.

A glance at the technicals

Key resistance: 23.6% Fibonacci at $131.76

Key support: 38.2% Fibonacci at $126.41

Ripple’s XRP

Ripple’s XRP was bullish for the better part of Monday and closed the day higher by over 6%.

Like most crypto majors, XRP started the day bullish and rallied for the better part of the day. However, by late evening, XRP tested multi-month resistance at $0.67870 but was quickly rejected.

This saw it turn bearish, and by the end of the day, had breached intra-day support at $0.64023, on the 23.6% Fibonacci.

At the time of writing, XRP was trading at $0.6189 and was down by 5.06%. It started the day bearish, and by daybreak, had hit the 38.2% Fibonacci support at $0.61647.

XRP/USD 1-hour chart 072721

A glance at the day ahead

In the day, the key level to watch will be the 38.2% Fibonacci support at $0.6147.

If bearish sentiment persists, and this support is broken, prices below $0.60 could be possible in the day.

On the other hand, if volumes decline in the broader market, XRP could consolidate between the 38.2% Fib support at $0.61647 and the 23.6% Fib resistance at $0.64023.

However, if there is an increase in buying momentum in the broader market, the 23.6% Fib resistance would come into focus. If it is broken, XRP testing prices above $0.67 in the day would be a chance.

A glance at the technicals

Key resistance:  23.6% Fibonacci at $0.64023

Key support: 38.2% Fibonacci at $0.61647

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