Cryptocurrencies stopped declining in late January after being in a bearish trend for nearly three months and in the last several days they have been runnning higher, making some considerable gains, with Bitcoin climbing above $45,000 today before retreating somewhat. Ethereum and Litecoin have displayed some bullish momentum as well recently, suggesting that the bullish trend might be back on, but they are facing resistance indicators above now, which will decide whether buyers resume the larger bullish trend or if the bearish period will continue.
Ethetereum Daily Chart Analysis – ETH Faces the 50 SMA Above
Ethereum almost reached $5,000 by early November, after being bullish since August. But, failed to take out that major level and has been declining since then. The retreat has been steep, with the 20 daily SMA (gray) showing that, since it has been acting as resistance during this time. ETH/USD fell below $2,200 last month, but it has climbed around $1,000 in the last several days as buyers finally reappeared.
Last week we saw a loss of 20,000 ETH coins with a value of over $322 million during the attack of the Wormhole bridge protocol which connects Ethereum and Solana blockchains. This is the second biggest hack in the DeFi sector. Ethereum founder Vitalik Buterin announced that he is planning to tackle scaling and gas issues by adding a feature of blob-carrying transactions in a hard fork which will be launched soon. Although, at the moment the market sentiment is driving Ethereum prices and now buyers are facing the 50 daily SMA. If the 50 SMA rejects it and the 20 SMA turns into support, then we might attempt to buy ETH down there.
Litecoin Daily Chart Analysis – LTC Facing the $140 Support/Resistance Zone
LTC still remains in the bearish zone
Litecoin failed to pusbh above the $300 level in November after a quick spike higher back then and lost around 2/3ds of the value during the bearish period in the market of the last three months. Although, the last support zone at $100 held the decline again in LTC and now we are seeing an attempt from LTC buyers to reverse the trend.
Although, they are facing the previous support zone above $140 which might turn into resistance. Litecoin does have a reason to trrally, after the MimbleWimble (MWEB) upgrade, which should make Litecoin more scalable and secure. The mining hashrate has also been increasing steadily for Litecoin, but the market sentiment is the main driver here as well, which will be the deciding factor for Litecoin.
Read More: Decisive Time for Ethereum (ETH), Litecoin (LTC) Buyers at Resistance