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

Depending on market momentum, it could be a range-bound day

Last Updated July 23rd 2021
5 Min Read

Ethereum

Ethereum was in the red all through Monday. By the end of the day, it was down by 4%.

Ethereum started the day bearish and dropped by a huge margin in the first hour of the day. This established bearish control and saw it trend lower up to daybreak.

Despite the strong selloff, bears could not push Ethereum low enough to test the 23.6% Fibonacci support at $2227.89.

This, coupled with an increase in bullish sentiment in the broader market, saw Ethereum gain some upside momentum at daybreak.

However, this momentum was short-lived, and by mid-day, the bearish sentiment that had started earlier in the day continued.

The bearish sentiment was so strong that Ethereum broke through the 23.6% Fibonacci by late afternoon.

Without much support from the broader market, sellers lost momentum just below the 23.6% Fibonacci support.  This coupled with short-sellers taking profits, saw Ethereum consolidate around the 23.6% Fibonacci support at $2227.89.

It traded around this support level for the rest of the day. By late Monday, bears were showing signs of re-emergence but failed to take control of Ethereum.

Ethereum is currently trading at $2330.19 and is up by 2.28%. It started the day trading along the 23.6% Fibonacci and traded in a range until daybreak.

By daybreak, buying sentiment was on the rise in the broader market. With Ethereum trading at key support in the day, it bounced off it at daybreak and has been trending up from that point.

ETH/USD 1-hour chart 070621

A glance at the day ahead

In the day, the key level to watch will be the 23.6% Fibonacci support at $2227.89. The direction that the broader market takes will also be a critical factor in the day.

In the event that the broader market turns bearish and Ethereum drops, the 23.6% Fibonacci support would come into play.

If the bearish sentiment is strong enough to push Ethereum through the 23.6% Fibonacci, it will mark a red day for Ethereum.

In such a situation, the next key level for Ethereum would be the 38.2% Fibonacci at $2129.58. If this level is broken, then Ethereum could retest the $2000 price level within the day.

On the other hand, if bullish sentiment rises in the broader market, the key level to watch would be Sunday’s high of $2387.07.

If bulls are strong enough to push through this level, then Ethereum could test price levels above $2500 within the day.

If the broader market is directionless in the day, then Ethereum could trade in a range between the 23.6% Fibonacci support at $2227.89 and Sunday’s high of $2387.07 on the upper side.

Given that the broader market is yet to show a significant increase in volumes, a range-bound day for Ethereum is more likely.

A glance at the technicals

Key support:  23.6% Fibonacci support at $2227.89

Key resistance: Sunday’s high of $2387.07

Litecoin

Litecoin was bearish for the better part of Monday. It started the day in the red, with a long bearish candle.

By daybreak, it was trading at the 23.6% Fibonacci support.  Without much buying momentum present in the market, Litecoin crashed through this support.

However, by midday, the selling momentum had eased up.  This followed some support from the broader market.

Litecoin traded in a range for a few hours, but volumes were low, and momentum was overall bearish.

What followed was a selloff that saw it crash further. By early afternoon, Litecoin had broken through key support at $137.63 on the 38.2% Fibonacci.  The selloff was so strong that Litecoin even tested the 50.0% support at $133.99.

By the time Litecoin tested the 50.0% Fibonacci support, it has been in a selloff for over half a day. This triggered profit-taking by short-sellers and saw it bounce off this price level in the day.

With the 50.0% showing signs of strength, buyers gained confidence, and Litecoin started edging higher.

By late evening, Litecoin had pushed through the 38.2% Fibonacci, which was now intra-day resistance. It kept edging higher until the end of the day.

Litecoin is currently trading at $142.13 and is up by 1.55%. It started Tuesday trading in the green, a continuation of the bullish sentiment that started on Monday evening.

At the time of going to press, Litecoin was trading at $142.05 on the 23.6% Fibonacci resistance.

LTC/USD 1-hour chart 070621

A glance at the day ahead

In the day, the key level to watch will be the 23.6% Fibonacci resistance at $142.05.

In the event that this resistance is broken, then it would be an indicator that bulls are firmly in control. In such a situation, the next key level to watch would be Sunday’s high of $147.49.

This could be an area of resistance for Litecoin, and if broken, Litecoin could test prices above $150 in the day.

On the other hand, if Litecoin fails to push through the 23.6% Fibonacci at $142.05, overall market volumes would play.

Litecoin could trade in a range between the 23.6% Fibonacci resistance and support at $137.6 on the 38.2% Fibonacci if volumes are low in the broader market.

However, in the event of a selloff, and the 38.2% Fibonacci support fails, Litecoin could retest the 50.0% Fibonacci at $133.99 for the second time in 24-hours.

If the 50.0% Fibonacci support is broken, then Litecoin could easily test prices below $130 in the day.

A glance at the technicals

Key support: 38.2% Fibonacci at $137.63

Key resistance: 23.6% Fibonacci at $142.05

Ripple’s XRP

Ripple’s XRP was bearish all through Monday. It was pretty much in line with the selloff in the broader market.

It crashed through two support levels in the day, namely the 38.2% Fibonacci at $0.67321 and the 50.0% Fibonacci at $0.65564.

However, by the time it pushed through the 50.0% Fibonacci, XRP was getting oversold. What followed was a bullish pullback that lasted for the latter part of the day.

XRP is currently trading at $0.6773 and is up by 0.25%.  It started the day in the green, and by the time of going to press, had pushed through the 38.2% Fibonacci resistance at $0.67321.

XRP/USD 1-hour chart 070621

A glance at the day ahead

In the day, the key level to watch will be the 38.2% Fibonacci resistance at $0.67321.

If XRP holds above this resistance, bulls could take control and see it test the 23.6% Fibonacci at $0.69569 in the day.

On the other hand, if bears take control in the day and the 38.2% Fibonacci resistance fails, then XRP could trend lower in the day and test the 50.0% Fibonacci support at $0.65564.

If the 50.0% Fib support holds, it could be a range-bound day. Failure could see XRP test prices below $0.64 in the day.

A glance at the technicals

Key resistance: 38.2% Fibonacci at $0.67321

Key support: 50.0% Fibonacci at $0.65564

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