Ethereum, Litecoin, & Ripple’s XRP Technical Analysis – 8th July

Bears in control as major support levels broken

Last Updated July 23rd 2021
5 Min Read

Ethereum

Ethereum had a pretty mixed day on Wednesday but closed the day in the green at $2364.32.

Ethereum started Wednesday bullish. This was after it bounced off the 23.6% Fibonacci support in Tuesday’s trading session.

The upside momentum continued until mid-morning when it tested multi-month resistance at $2408.45.

Without support from the broader market, Ethereum could not push through this resistance. What followed was a drop in the price until late evening, when bulls tried to reassert themselves.

They pushed Ethereum higher until the end of the day but failed to retest resistance, or even clear out the bearish candle established earlier in the evening.

At the moment, Ethereum is trading at $2235.10 and is down by 6.12%. Failure to re-test resistance by end of Wednesday meant that bullish sentiment was weak.

This saw Ethereum crash from the very first hour of Thursday trading. By daybreak, it was trading at $2253.34 on the 23.6% Fibonacci support.

Bulls tried to retake control at daybreak, but their overall momentum fizzled out without support from the broader market. What followed was a crash through the 23.6% Fibonacci support at $2253.34.

Ethereum’s bearish momentum was accelerating at the time of writing, in tandem with the bearish sentiment in the broader market.

ETH/USD 1-hour chart 070821

A glance at the day ahead

Ethereum is pretty bearish at the moment. If this bearish momentum continues, then it could bring the 38.2% Fibonacci support at $2156.58 into play.

If this support is broken, the next key support would be the 50.0% Fibonacci at $2079.79. If it pushes through this level, then prices below $2000 could be possible in the day.

On the other hand, if the 38.2% Fibonacci support holds, how it trades in the day will be dependent on overall market momentum.

If the selloff in the broader market eases up, Ethereum could trade in a range between the 38.2% Fibonacci at $2156.58 and the 23.6% Fibonacci resistance at $2253.34.

However, if there is a sudden increase in bullish momentum in the broader market, then there could be a possibility of Ethereum pushing through the 23.6% Fibonacci resistance at $2253.4.

If this scenario plays out and Ethereum sustains strong bullish momentum, then there could be a possibility of retesting Wednesday’s highs of $2407.51.  

Such a V-shaped recovery could see Ethereum test prices above $2500 in the day.

A glance at the technicals

Key resistance: 23.6% Fibonacci at $2253.34

Key support: 38.2% Fibonacci at 2156.58

Litecoin

Litecoin had a mixed day in Wednesday’s trading session. It started the day in gains, but it was trading right where it started at the end of the day.

Litecoin started the day in the green after it pushed through the 38.2% Fibonacci resistance at $138.49 in the first two hours of trading.

From that point on, it then rallied up to daybreak when it hit key resistance at $142.66, on the 23.6% Fibonacci resistance.

It labored around this price level but failed. However, the bearish sentiment was not strong at that time, and Litecoin made a second attempt at the 23.6% Fibonacci resistance in mid-afternoon.

A second time, failure to push through resistance saw Litecoin form a double top around the 23.6% Fibonacci resistance.

This is a strong bearish signal and energized bears to take control. Litecoin started trending lower from that point on and closed the day in the red.

Litecoin is currently trading at $133.85 and is down by 5.57%. It started the day trading at $138.49 on the 38.2% Fibonacci support.

Within the first hour of Thursday, it had broken through this support, and with high volumes.

The selloff was so strong that by daybreak, it had pushed through the 50.0% Fibonacci support at $135.19.

At the time of writing, it was oscillating above the 61.8% Fibonacci support at $131.81.

LTC/USD 1-hour chart 070821

A glance at the day ahead

In the day, the key level to watch will be the 61.8% Fibonacci support at $131.81. If bearish sentiment increases in the broader market, this support could break in the day.

In such a scenario, Litecoin could easily test prices below $124.0. However, in the event that the 61.8% Fibonacci support holds, two scenarios could play out.

The first one is a range-bound day. If there is little momentum in the broader market, then Litecoin could oscillate between the 61.8% Fibonacci support at $131.81 and key resistance at $135.19 on the 50.0% Fibonacci.

On the other hand, if bulls take control in the broader market and Litecoin pushes through the 50.0% Fibonacci resistance, it could be a bullish day for Litecoin.

If such upside momentum pushes Litecoin through the 38.2% Fibonacci resistance at $138.49, it would indicate a V-shaped recovery for Litecoin. In such a scenario, Litecoin could be the green into the weekend.

A glance at the technicals

Key resistance: 50.0% Fibonacci at $135.19

Key support: 61.8% Fibonacci at $131.81

Ripple’s XRP

Ripple’s XRP was in a consolidation all through Wednesday. It started and ended the day at pretty much the same price level.

XRP started Wednesday trading on the 50.0% Fibonacci at $0.66066 support. It bounced off this level, but by daybreak, had lost upside momentum.

What followed a correction that saw it retest the 50.0% Fibonacci support by late evening. It made a minor bounce off it again but could not retest the day’s high of $0.67355.

At the time of writing, XRP was trading at $0.6352, at is down by 5.57%. Low bullish sentiment in late Wednesday trading saw XRP start Thursday trading bearish.

The momentum was so strong that XRP pushed through two key support levels, the 50.0% Fibonacci at $0.66066 and the 61.8% Fib at $0.64393 by daybreak.

It is currently in a consolidation, just below the 61.8% Fib support.

XRP/USD 1-hour chart 070821

A glance at the day

In the day, the key level to watch will be the 61.8% Fibonacci, which is now resistance at $0.64393.

If bulls are strong enough to push through this resistance, then the next level to watch would be the 50.0% Fib resistance, which is now resistance at $0.66066.

If it pushes through this second resistance, then it would mark a V-shaped recovery for XRP. In such a scenario, bulls could be in control all through into the weekend.

On the other hand, if bearish sentiment sustains in the broader market, XRP could trend lower, with the next key support at $0.6006.

A glance at the technicals

Key resistance: 61.8% Fibonacci at $0.64393

 Key support:  Multi-week support at $0.60063

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