Are Ethereum ETH, Litecoin LTC starting to bounce off major support?
Litecoin (LTC) and Ethereum (ETH) reversed last month after being bearish since November as cryptocurrencies attempted to turn bullish as risk sentiment improved in financial markets in the second half of the year, despite the conflict in Ukraine.
ETH and LTC made an impressive rally, but the rise ended this month and selling resumed. However, these cryptocurrencies were facing major support with LTC facing the $100 level while ETH was facing the $3,000 level, which we believe would provide decent support. They have been climbing higher in the last two days, so let’s see if the decline is over.
Litecoin Daily Chart Analysis – $100 Support Holds
If $100 holds for the third time, the trend will likely turn bullish
Litecoin has tested the $100 level several times since January as overall sentiment remains bearish in the crypto market. After a jump from $200 to $300 in early November, LTC hit lower highs until March when it reversed after LTC sellers failed to push the price below the level. $100 for about two weeks.
Litecoin broke above the moving averages that acted as resistance, but it failed to break above the other major support zone at $140-45, so it eventually reversed lower this month as the Sentiment has turned bearish again in the market. A week ago we saw a spike in SLD whale activity which is usually followed by a decline as trading volume declines thereafter, but now the decline appears to have ended for the time being and LTC is bouncing off that support zone, now trading at nearly $110.
Ethereum Daily Chart – Ethereum Starts Reversing at $3,000
The MAs added strength to the support zone around $3,000
Ethereum failed to break above $5,000 in November and fell back, losing more than half of its value. ETH/USD turned bullish again in March by breaking above the 50 SMA (yellow) and the 100 SMA (green) on the daily chart. But it struggled to break above the $3,580 where the 200 SMA is located.
This moving average which acted as support before in October, turned into resistance and rejected Ethereum. ETH/USD reversed lower, losing more than $500, but the decline stopped at the $3,000 level, where the 50 and 100 SMA are located. Ethereum has launched the first mainnet shadow fork in preparation for Merge, which should help sustain demand for this cryptocurrency.