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Ethereum, Litecoin, & Ripple’s XRP Technical Analysis – 6th August

Key resistance levels at play after a volatile day

Last Updated August 6th 2021
6 Min Read

Ethereum

Ethereum had quite a mixed day on Thursday, but by the end of the day, was up by over 4%.

It started the day bearish after bulls lost momentum following more than 24-hours of gains.

Profit-taking and an overall decline in bullish sentiment in the broader market sent Ethereum crashing and saw it test the 23.6% Fibonacci support just before daybreak.

While this support held for a few hours after that, bulls were not strong enough to sustain a bounce off it.

This led to an increase in selling momentum that saw Ethereum push through the 23.6% Fibonacci support at $2667.3 with high volumes.

The selloff was so strong that by early afternoon, it had pushed through the 38.2% Fibonacci support at $2560.0.

However, the push through the 38.2% Fibonacci support was quickly rejected, as bulls took back control of the broader market.

Buying volumes were so high that Ethereum pushed back through the 23.6% Fibonacci, which was now resistance, and came close to testing multi-month resistance at $2839.4 before the end of the day.

At the time of writing, Ethereum was trading at $2819.15 and was up by 3.76%. It started Friday trading in a continuation of the bullish rally that started on Thursday.

However, by the second hour of the day, it had hit the multi-month resistance at $2839.4 but did not have the momentum to push through it.

ETH/USD 1-hour chart 080621

A glance at the day ahead

In the day, the key level to watch will be the multi-month resistance at $2839.4.

If bulls have the momentum to push Ethereum through this level, it would indicate that buying momentum is on the rise.

In such a scenario, Ethereum could easily test prices above $3000 in the day.  

On the other hand, if Ethereum fails to push through this resistance, two scenarios could play out.

The first one is where bulls take control and cause a reversal. In such a scenario, the key level to watch would be 23.6% Fibonacci support at $2667.3.

If bears are strong enough to push it through the 23.6% Fibonacci support, the next key level to watch would be the 38.2% Fibonacci support at $2560.0.

If this is broken, then prices below $2400 could be possible in the day.

On the other hand, if volumes decline in the day, Ethereum could trade in a range between multi-month resistance at $2839.4 and the 23.6% Fibonacci support at $2667.3.

A glance at the technicals

Key resistance: Multi-month resistance at $2839.4

Key support: 23.6% Fibonacci at $2667.3

Litecoin

Litecoin had quite a volatile day on Thursday, and by the end of the day, was back to where it started.

It started the day bearish after bulls failed to push it through the 23.6% Fibonacci resistance at $143.65 in the first few hours of the day.

This led to an increase in selling momentum that saw Litecoin push through the 38.2% Fibonacci support at $139.90 in early morning trading.  

The selloff was so strong that by early afternoon, Litecoin had pushed through the 50.0% Fibonacci support at $136.87.

However, the push through the 50.0% Fibonacci support was quickly rejected, as bulls took back control of the broader market.

Litecoin pushed back through the 38.2% Fibonacci, which was now resistant, and tested the 23.6% Fibonacci resistance at $143.65 by the end of the day.

At the time of writing, Litecoin was trading at $144.12 and was up by 0.29%. It started Friday trading in a continuation of the bullish rally that started on Thursday.

By the second hour of the day, it had crossed through the 23.6% Fibonacci at $143.65 and was trading above it.

LTC/USD 1-hour chart 080621

A glance at the day ahead

In the day, the key level to watch will be the 23.6% Fibonacci at $143.65, which is now intra-day support.

If bulls have the momentum to hold Litecoin above this level, it would be an indicator that buying momentum is on the rise.

In such a scenario, weekly resistance at $145.71 would come into play. If this is broken, then Litecoin could test multiple-week resistance at $149.77 in the day.

On the other hand, if Litecoin fails to hold above intra-day support at the 23.6% Fibonacci, two scenarios could play out.

The first one is where bulls take control, and cause a reversal. In such a scenario, the key level to watch would be 38.2% Fibonacci support at $139.90.

If bears are strong enough to push it through the 38.2% Fibonacci support, the next key level to watch would be the 50.0% Fibonacci support at $136.87.

If this is broken, then prices below $130 could be possible in the day.

On the other hand, if volumes decline in the day, Litecoin could trade in a range between weekly resistance at $145.71 and the 23.6% Fibonacci support at $143.65.

A glance at the technicals

Key resistance: Weekly resistance at $145.71

Key support: 23.6% Fibonacci at $143.65

Ripple’s XRP

Ripple’s XRP had a volatile day on Thursday, and by the end of the day, it was trading right where it started.

XRP started the day bearish after bulls failed to push it through the 23.6% Fibonacci resistance at $0.7335 in the first 2 hours of the day’s trading.

This led to an increase in selling momentum that saw XRP push through the 38.2% Fibonacci support at $0.7061 in early morning trading.  

However, the push through the 38.2% Fibonacci support was quickly rejected, as bulls took control of the broader market.

XRP bounced off the 38.2% Fibonacci and tested the 23.6% Fibonacci resistance at $0.7335 by the end of the day.

At the time of writing, XRP was trading at $0.7326 and was up by 0.47%. It started Friday trading in a continuation of the bullish rally that started on Thursday.

By the second hour of the day, it had crossed through the 23.6% Fibonacci at $0.7335 and was trading above it.

XRP/USD 1-hour chart 080621

A glance at the day ahead

In the day, the key level to watch will be the 23.6% Fibonacci at $0.7335, which is now intra-day support.

If bulls have the momentum to hold XRP above this level, it would be an indicator that buying momentum is on the rise.

In such a scenario, weekly resistance at $0.7530 would come into play. If this is broken, then XRP could test two-week resistance at $0.7777 in the day.

If it breaks through this level, prices above $0.80 could be possible in the day.

On the other hand, two scenarios could play out if XRP fails to hold above intra-day support at the 23.6% Fibonacci.

The first one is where bears take control and cause a reversal. In such a scenario, the key level to watch would be 38.2% Fibonacci support at $0.7061.

If bears are strong enough to push XRP through the 38.2% Fibonacci support, the next key level to watch would be the 50.0% Fibonacci support at $0.6840.

If this is broken, then prices below $0.64 could be possible in the day.

On the other hand, if volumes decline in the day, XRP could trade in a range between weekly resistance at $0.7530 and the 23.6% Fibonacci support at $0.7335.

A glance at the technicals

Key resistance: Weekly resistance at $0.7530

Key support: 23.6% Fibonacci at $0.7335        

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