In keeping with the improving atmosphere, the crypto market has been on a positive streak for most of October. BITCOIN smashed through a critical psychological barrier by breaking above the all-time high of $65,000, further lifting mood and dragging the rest of the market higher with it. However, cryptocurrencies have lost ground in recent trading sessions, with Bitcoin falling below $60,000 for the first time. Ethereum and Litecoin have also retreated, returning to the neutral zone, indicating that they may be entering a bearish trend. Let’s have a look.
Since the end of July, when the crypto market’s main negative trend ended, Ethereum has been showing signs of resurgence. It even brushed aside a downturn in September and continued to rise, breaking through the $4,000 large round barrier, which is a key psychological level for Ethereum.
Moving averages have performed well as support indicators, and the price of ETH/USD has challenged the all-time high (ATH). Despite the fact that the price was not retreating lower – in fact, it was trading near to that level – buyers were unable to take it out, indicating that it remains a solid resistance zone.
The market is currently on the decline, with Ethereum trading below $4,100 for the first time. Following the bullish momentum and rejection at the ATH, Ethereum may see a negative retracement before the next bullish wave. Whether that’s the case, we’ll aim to purchase this coin above $3,000 at the 100 SMA, but first, let’s see if sellers are strong enough to drive the price down there.
For quite some time, Litecoin has been trading in a range below the 200 SMA on the daily chart, as we have frequently stated. The previous two breaks above it turned out to be fake-outs, as the price quickly dropped below them, however this time the break appeared to be more lasting.
Litecoin Price Chart Source – tradingview.com
During the previous two days, this moving average has even turned into support, confirming the breakthrough. After a $500 million Bitcoin liquidation, the price started to rally off this level, but today we saw a swift negative reversal in the crypto market. So, we’re back below the 200 SMA, which is negative for Litecoin. However, the price is starting to rise again, and if the daily candlestick finishes above the 200 SMA, that will be a good indicator. Otherwise, the LTC/USD exchange rate might drop to $150.