Crypto Update: Ethereum and Ripple Lead Rally After Pullback
The major coins are sporting meaningful gains today after yesterday’s negative session, as altcoins are emerging from the short-term dip. While the top digital currencies are still below their recent rally highs and they continue to be in a crucial position from a long-term perspective, the key support levels held up, and the advancing trend remains intact.
Correlations between the coins are somewhat lower than in recent weeks, and the continued strength of the small-cap leaders, such as Binance Coin, Ontology, Qtum, and VeChain is also a positive sign. That said, the momentum of the advance could still be stronger, and several coins continue to show signs of weakness, with BTC still not triggering a short-term buy signal for example.
BTC/USD, 4-Hour Chart Analysis
Bitcoin is still stuck below the $7650-$7800 support/resistance zone, on a neutral short-term signal, even as a durable bottom is likely already in. The most valuable coin is the biggest concern for crypt-bulls here, but today, the coin managed to rally together with the strongest altcoins. Given the positive long-term picture, we still expect the coin to resume the recovery, with further resistance zones ahead near $8400, $8700, and between $9000 and $9200, and support found at $7350, $7000, and $6750.
XRP/USD, 4-Hour Chart Analysis
Ripple has been among the leaders of the current rally attempt, as we expected, and the coin continues to outperform the broader market from a technical perspective. XRP is trading right at the $0.68 resistance level after finding support near the key $0.64 level during the pullback. We expect a rally towards the $0.73 level, although further consolidation is possible before that move.
Ethereum Trading Near $600 as EOS Eyes $15.50 Again
ETH/USD, 4-Hour Chart Analysis
Ethereum found support near $575, the upper boundary of the primary zone, and the coin is showing short-term strength after a less-than-convincing initial rally. The key resistance zone between $625 and $645 is still ahead, and trendline resistance is also found near that range. A move above that zone would open up the way towards the $735-$780 range, as the long-term setup remains positive.
EOS/USD, 4-Hour Chart Analysis
Among the other early leaders of the recovery, IOTA is slightly lagging the best performing coins now, while EOS found support after an orderly correction. A rally above $15.50 would confirm a new short-term uptrend which would be a very positive sign for the whole segment. EOS face further resistance near $19 and $23, while key support is found near $12, $10, and $9.
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Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.