Ethereum, Litecoin & Ripple’s XRP Technical Analysis – 2nd July

Key support and resistance levels at play as the market struggles to find direction

Last Updated July 23rd 2021
5 Min Read

Ethereum

Ethereum started Thursday trading at the tail end of Wednesday’s rally. By the of the day, it was down by about 5% to trade at $2120.44.

Ethereum had a mixed day on Wednesday, but towards the end of the day, it rallied and tested the 61.8% Fibonacci resistance at $2278.89.

In early Thursday trading, it retested this price level but failed to break it. What followed was a correction that persisted all through the morning.

By daybreak, the selloff was accelerating. Ethereum broke through the 50.0% Fibonacci support with high volumes.

However, by noon, the selloff had slowed down, as Ethereum found some support around the $2060.20 price level.

This is a level it had also found support in Wednesday’s trading session. It consolidated around it for the better part of the day.

At the moment, Ethereum is down by 8.21% and is trading at $2034.98. It started the day in a range above the $2060.20 support, continuing Thursday’s price action.

However, just three hours into the day, this support gave way, and bears took control. With bearish momentum rising in the broader market, Ethereum broke the 38.2% Fibonacci support at $2060.92.

 It has been trending lower from that point on, up to the time of going to press.  

ETH/USD 1-hour chart 070221

 A glance at the day ahead

Ethereum is already showing bearish signals in the day by pushing through the 38.2% Fibonacci at $2060.92.

If this momentum continues in the day, then the next level to watch would be $2000. This is a key psychological support level for Ethereum. If broken, then the 23.6% Fibonacci support at $1925.85 would come into play.

In the event that Ethereum tests, and breaks the 23.6% Fib support, then there would be a possibility of trading in the red all through the day.

On the other hand, if bulls retake control in the broader market, the first level to watch would be the 38.2% Fibonacci, which is now intra-day resistance.

If this resistance is broken, then the next level to watch would be the 50.0% Fibonacci at $2170.57.

Pushing through the 50.0% Fibonacci would be a clear indicator that bulls are back in control. In such a scenario, there would be a likelihood of Ethereum trading in the green all through the weekend.

The other possibility would be a range-bound day for Ethereum. If the broader market selloff eases in the day, then there would be a possibility of Ethereum oscillating between the 38.2% Fibonacci resistance at $2060.92, and the $2000 psychological support level.

Given that the overall market momentum is bearish, Ethereum is either to continue the bearish that started in Thursday’s session.

The other more likely option is a range-bound day, in a consolidation that could run into the weekend.

 This would be most likely if either the $2000 support or further down, the 23.6% Fibonacci support holds within the day.

A glance at the technicals

Key pivot levels

Major resistance: 38.2% Fibonacci at $2060.92

Minor support: Psychological support at $2000

Major support:  23.6% Fibonacci at $1925.85

Litecoin

Litecoin started the day bearish after bulls failed to retest Tuesday’s highs of $149.28 in late Wednesday trading.

Without upside momentum, and weakness in the broader market, Litecoin was in the red for the better part of Thursday morning. 

By daybreak, it was trading at key support on the 61.8% Fibonacci at $136.95.  This support level proved to be pretty strong, and Litecoin traded around it all through the day.

Litecoin is currently trading at $132.63 and is down by 2.97%. It started the day in the red after it broke through the 61.8% Fibonacci support at $136.95.

This saw it trend lower all through the morning, and by daybreak, it had tested the 50.0% Fibonacci support at $130.96. It was trading at this price level at the time of going to press.

LTC/USD 1-hour chart 070221

A glance at the day ahead

Litecoin is trading at $130.96 on the 50.0% Fibonacci. If this support is broken in the day, it would indicate that bears are firmly in control.

In such a scenario, the next key support level to watch would be the 38.2% Fibonacci support at $124.97.  Pushing through this level would see Litecoin trade in the red all through the weekend.

On the other hand, if the 50.0% Fibonacci support holds, LTC could test the 61.8% Fibonacci resistance at $136.95. 

Without support from the broader market, Litecoin could find it hard to push through this resistance.

In such a scenario, it could range between the 50.0% Fibonacci at $130.96 and the 61.8% Fibonacci at $136.95.

However, if it gains enough momentum to push through the 61.8% Fibonacci at $136.95, it would indicate that bulls are in control.

Litecoin could rally all through the day in such a scenario and possibly be in the green all through the weekend.

A glance at the technicals

Key pivot levels

Key resistance: 61.8% Fibonacci at $136.95

Key support: 50.0% Fibonacci at $130.96

Ripple’s XRP

Ripple’s XRP was in a selloff all through Thursday. The selloff was so intense that by daybreak, XRP pushed through the 61.8% support at $0.6755 with high volumes.

However, it found some support at Wednesday’s low of $0.6501. It traded along this price level all through the day.

XRP is currently trading at $0.6492 and is down by 1.70%. It started the day within Thursday’s range, but by daybreak, had broken through this support.

However, bearish momentum has slowed down, and XRP is now holding above this support.

XRP/USD 1-hour chart 070221

A glance at the day ahead

In the day, the key level to watch will be the 50.0% Fibonacci support. If it pushes through this level in the day, then it would mean that bears are in control.

In such a situation, the next level to watch would be 38.2% Fibonacci support at $0.6123. If this support is broken, XRP could be bearish all through the weekend.

On the other hand, if the 50.0% Fib support holds and XRP gains upside momentum, the next key level to watch would be the 61.8% Fibonacci at $0.6755.   If it holds, then it would be a range-bound day for XRP.

On the other hand, if it pushes through this resistance, then XRP could rally throughout the day, and into the weekend.

A glance at the day ahead

Key pivot levels

Key resistance: 61.8% Fibonacci at $0.6755

Key support: 50.0% Fibonacci at $0.6439

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