Ethereum, Litecoin, & Ripple’s XRP Technical Analysis – 7th Oct

Crypto majors bounce off key support levels after a volatile session on Wednesday

Last Updated October 7th 2021
4 Min Read

Ethereum

Ethereum had a pretty volatile day on Wednesday. However, it still closed higher by 1.5%.

Ethereum started Wednesday trading at the tail end of Tuesday evening’s uptrend. Buying momentum was in decline, and by the second hour of the day, bears took control.

What followed was a selloff for the better part of the morning.  Bearish momentum accelerated at daybreak, and Ethereum easily pushed through the 23.6% Fibonacci support at $3453.45.

By midday, it had hit the 38.2% Fibonacci support at $3343.17. This support proved to be quite strong, and Ethereum bounced off it with strong volumes.

Buying momentum increased from that point on until early evening when Ethereum hit the multi-month resistance at $3630.32.

Bulls lacked the momentum to push it through this resistance, and what followed was a correction for the better of the evening.

Ethereum started Thursday trading bearish, a continuation of the trend that started in late Thursday trading. However, at the time of writing, the selloff was easing up.

ETH/USD daily chart 100721

A glance at the day ahead

In the day, the key levels to watch are the multi-month resistance at $3630.32 and the 23.6% Fibonacci support at $3453.45.

If bulls take control in the day and push Ethereum through the multi-month resistance at $3630.32, it could easily test prices above $3800.

On the other hand, if bears take control in the day and the 23.6% Fibonacci support at 3453.45 is broken, the next key level to watch would be the 38.2% Fibonacci support at $3343.17. If it’s broken, then prices below $3200 could be seen in the day.

However, if volumes decline in the day, then Ethereum could trade in a range between the multi-month resistance at $3630.32 and the 23.6% Fibonacci support at $3453.45.

A glance at the technicals

Key resistance: Multi-month resistance at $3630.33

Key support: 23.6% Fibonacci at $3453.45

Litecoin

Litecoin was volatile on Wednesday but still closed the day higher by 2.4%.

Litecoin started Wednesday trading with bullish weakness. This was a continuation of late Tuesday trading when it pushed through the 23.6% Fibonacci resistance but lost momentum shortly after.

This bull weakness became evident in the second hour of the day as bears took control from that point on.

Bearish momentum accelerated at daybreak, and Litecoin easily pushed through the 23.6% Fibonacci support at $172.27.

By midday, it had hit the 38.2% Fibonacci support at $166.56. This support proved to be quite strong, and Litecoin bounced off it with strong volumes.

Buying momentum increased from that point on until early evening when Litecoin hit the multi-month resistance at $183.00.

Bulls lacked the momentum to push it through this resistance, and what followed was range-bound trading for the better part of the evening.

Litecoin started Thursday trading bearish, a continuation of the trend that started in late Wednesday trading. However, bullish momentum was on the rise by mid-morning, and Litecoin had pushed through the multi-month resistance at $183.00.

LTC/USD daily chart 100721

A glance at the day ahead

The key levels to watch in the day are the multi-month resistance at $183.00 and the 23.6% Fibonacci support at $172.27.

If bulls take control in the day and push Litecoin through the monthly resistance at $183.00, then Litecoin could easily test prices above $200 in the day.

On the other hand, if bears take control in the day and the 23.6% Fibonacci support at $172.77 is broken, the next key level to watch would be the 38.2% Fibonacci support at $166.56. If it’s broken, then prices below $160 could be seen in the day.

However, if volumes decline in the day, then Litecoin could trade in a range between the multi-month resistance at $183.00 and the 23.6% Fibonacci support at $172.77.

A glance at the technicals

Key resistance: Multi-month resistance at $183.00

Key support: 23.6% Fibonacci at $172.77

Ripple’s XRP

Ripple’s XRP had a volatile day on Wednesday but still closed higher by about 1%.

XRP started Wednesday trading bearish after bullish momentum waned in late Tuesday trading.

Bearish momentum accelerated at daybreak, and XRP easily pushed through the 23.6% Fibonacci support at $1.0548.

By midday, it had hit the 38.2% Fibonacci support at $1.0225. This support proved to be quite strong, and XRP bounced off it with strong volumes.

Buying momentum increased from that point on until early evening when XRP hit the multi-month resistance at $1.1072.

However, bulls lacked the momentum to push XRP through this resistance, and what followed was a correction for the better of the evening.

XRP started Thursday trading bearish, a continuation of the trend that started in late Thursday trading. However, just before daybreak, it hit the 23.6% Fibonacci support at $1.0548.

It has since bounced off this support and was gaining upside momentum at the time of writing.

XRP/USD daily chart 100721

A glance at the day ahead

The key levels to watch in the day are the multi-month resistance at $1.1072 and the 23.6% Fibonacci support at $1.0548.

If bulls take control in the day and push XRP through the multi-month resistance at $1.1072, then XRP could easily test prices above $1.15 in the day.

On the other hand, if bears take control in the day, and the 23.6% Fibonacci support at 1.0548 is broken, the next key level to watch would be the 38.2% Fibonacci support at $1.0225. If it’s broken, then prices below $1 could be seen in the day.

However, if volumes decline in the day, then XRP could trade in a range between the multi-month resistance at $1.1072 and the 23.6% Fibonacci support at $1.0548.

A glance at the technicals

Key resistance: Multi-month resistance at $1.1072

Key support: 23.6% Fibonacci at $1.0548

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