Ethereum, Litecoin, & Ripple’s XRP Weekly Technical Analysis – July 19th

Key support levels at play as volumes thin out

Last Updated July 23rd 2021
5 Min Read

Ethereum

Ethereum was bearish for the whole of the week ending July 18th. By the end of the week, it was down by 12.94%.  

Ethereum started last week in the red, continuing the bearish trend that started in the previous week. 

On Monday, bearish momentum accelerated. This continued into Tuesday, and by Wednesday, it was trading at $1892.28 on the 61.8% Fibonacci support.

It bounced off this support quite strongly and ate into the losses that it had made on Tuesday.

 However, the overall market remained bearish. This had a huge effect on Ethereum and saw it turn bearish on Thursday.

This bearish sentiment extended into Friday, and by the weekend, it was trading at the 61.8% Fibonacci support.

This support was pretty strong, and Ethereum traded along it for the better of the weekend.

Volumes were pretty low over the weekend, too, an indicator of bearish exhaustion along this support.

Ethereum was still trading along the 61.8% Fibonacci support at the time of writing, but with low volumes. It is yet to show any direction from this support.

ETH/USD 1-day chart 071921

A glance at the week

In the week, the key level to watch will be the 61.8% Fibonacci support. If bears take control and Ethereum breaches it, it could indicate that the bear market that started two months ago is still strong.

In such a scenario, the key level to watch would be the June 25th low of $1714.43. If this low is broken, Ethereum testing prices below $1500 in the week could be a risk.

On the other hand, if volumes remain depressed, there could be a chance of the 61.8% Fibonacci support holding strong. There is a good chance of Ethereum consolidating around this support all through the week in such a scenario.

However, if bullish sentiment rises in the broader market, there could be a possibility of Ethereum bouncing off this support. In such a scenario, the next key level to watch would be the 50.0% Fibonacci resistance at $2365.82.

If the momentum is strong enough to push through this resistance, then Ethereum could easily test prices above $2800 within the week. 

If momentum is not strong enough to push through the 50.0% Fibonacci, then Ethereum could trade in a range between the 61.8% Fib support at $1892.28 and 50.0% Fibonacci resistance at $2365.82.

A glance at the technicals

Key support: 61.8% Fibonacci at $1892.28.

Litecoin

Litecoin was bearish for the better part of last week. By the end of the week, it was down by 11.98%.

It started last week in a range, continuing the consolidation pattern that started in the previous week.  However, by Wednesday, bears took control, and Litecoin broke out of this range.

It started trending lower, and by the end of the week, had found support at $123.07. This is a price level where it had found some support on the 26th of June, after a huge selloff previously.

Litecoin is currently trading at $119.75 and is down by 2.18%. It started this week bearish and has broken through the $123.07 support in early Monday trading.

LTC/USD 1-day chart 071921

A glance at the week ahead

In the week, the key level to watch will be the $123.7 support. Now that it has been breached, momentum in the broader market will play a role in the price action of Litecoin.

If bearish momentum rises in the broader market, then the next target for Litecoin would be the 7-month support at $100.95.

If bearish momentum is strong enough to push through this support, then Litecoin could easily test price levels below $100 in the week.

However, if volumes remain low in the week, Litecoin could trade in a range around the $123.07 support.

On the other hand, if there is an increase in bullish momentum in the broader market, and it pushes through the $123.07 support, two scenarios could play out.

The first one is that it could rally towards the 61.8% Fibonacci resistance at $186.86. If it pushes through this resistance, then prices above $230 could be possible in the week.

However, if current price action is anything to go by, chances are that it could range around the $123.07 support throughout the week.

A glance at the technicals

Key support: 26th June support at $123.07

Ripple’s XRP

Ripple’s XRP was bearish for the better of last week. By the end of the week, it was down by over 9%.

XRP started the week trading in a range. This was a continuation of the range-bound trading that started in the previous week.

However, bearish momentum took over on Wednesday and was dominant all through the week.

By the end of the week, it was trading at $0.58227, a key support level in the week. It ranged around this support all through the week.

At the moment, XRP is trading at $0.586 and is down by 0.89%. It is still oscillating at the $0.58227 support.

XRP/USD 1-day chart 071921

A glance at the week ahead

The key level to watch in the week will be the $0.58227 multiple-week support.

If this support is broken, then it would be an indicator that bears are in control. In such a situation, the next level to watch would be the 22nd June low of $0.5105. If this low is broken, then XRP could easily test prices below $0.40 in the week.

However, if there is an increase in bullish sentiment and XRP rallies off the $0.5105 support, the next key level to watch would be the 61.8% Fibonacci resistance at $0.85592. If this level is broken, then there could be a chance of XRP testing $1 in the week.

The other likely scenario in the week is one where it consolidates around the $0.58227 support.

A glance at the technicals

Key support: Multi-week support at $0.58227

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