Cryptocurrencies have turned the tail and crashed unexpectedly. They have been on a strong bullish run recently, with Bitcoin overtaking $53,000 today while Ethereum climbed above $4,000 briefly a few days ago. But, they have all turned around and crashed by around 30%, even the most bullish ones such as the Solana coin, which has gained nearly 300% in three weeks.
Ethereum Analysis – The 50 SMA stops the Decline for ETH/USD
Ethereum turned bullish more than a month ago, after forming a solid support zone around the $1,700 level. It pushed above all moving averages on the daily chart and the 20 SMA (gray) turned into support, showing that the trend was quite strong.
Ethereum has been one of the strongest cryptos during this bullish period since late July, gaining around 250% and particularly breaking above $4,000. But, the crash today was quite fast and the price fell to the previous support zone surrounding the $3,000 level. At least, that support zone held once again and the price has climbed back above the 20 SMA. So, this moving average is not considered broken yet, which means that the uptrend continues and this sudden crash might be a good opportunity to buy Ethereum and other cryptocurrencies.
Litecoin Analysis – The 200 SMA Holds As Support for LTC/USD
Litecoin finding support at the 50 and 100 daily SMAs
Litecoin was lagging the crypto market until late last week, as it was stagnating below the 200 SMA (purple) on the daily chart. But, the breakout came on Friday and Litecoin pushed to $233, gaining around 40% in value in a few days.
Although, the reversal came today, following the rest of the market down and LTC/USD fell to $163, giving back all the gains. Although, here it was the 100 SMA (green) that held the decline, helped by the 50 SA (yellow) as well. Buyers came in at that area and pushed the price higher, now trading at the 200 SMA (purple). If Litecoin closes above the 200 daily SMA today, the chance of a bounce higher from here is higher. So, we will follow the price action and might open a buy Liteccoin signal at the 200 SMA, after having a couple of winning traders after buying Litecoin last month.