Are Ethereum ETH, Litecoin LTC Starting to Bounce Off Major Support?
Ethereum ETH and Litecoin LTC are beginning to reverse higher at $3,000 and $100 respectively as these major support/resistance zones hold.
Litecoin (LTC) and Ethereum (ETH) reversed higher last month after being bearish since November, as cryptocurrencies tried to turn bullish, with the risk sentiment improving in financial markets in the second half, despite the conflict in Ukraine.
ETH and LTC made an impressive rally, but the climb ended this month and the selloff resumed again. Although, these cryptocurrencies were facing some major support with LTC facing the $100 level while ETH was facing the $3,000 level, which we predicted would provide some decent support. They have been climbing higher in the last two days, so let’s see if the decline has ended.
Litecoin Daily Chart Analysis – The $100 Support is Holding
If $100 holds for a third time, then the trend will likely turn bullish
Litecoin has been testing the $100 level several times since January, as the overall sentiment remains bearish in the crypto market. After a jump from $200 to $300 in early November, LTC was making lower highs until March, when it reversed higher after LTC sellers failed to push the price below the $100 level for about two weeks.
Litecoin moved above moving averages which were acting as resistance but it failed to push above the other major support area at $140-45, so it eventually reversed lower this month as the sentiment turned bearish again in the market. A week ago we saw a spike in large LTC whales activity, which is usually followed by a decline as the volume of transactions falls after that, but now the decline seems to have ended for the time being and LTC is bouncing off this support area, now trading close to $110.
Ethereum Daily Chart – Ethereum Starting to Reverse At $3,000
MAs have added strength to the support zone around $3,000
Ethereum failed to push above $5,000 in November and reversed lower, losing more than half its value. ETH/USD turned bullish again in March as it pushed above the 50 SMA (yellow) and the 100 SMA (green) on the daily chart. But it struggled to push above $3,580 where the 200 SMA stands.
That moving average which has acted as support before in October, turned into resistance and rejected Ethereum. ETH/USD reversed lower losing more than $500, but the decline stalled at the $3,000 level, where the 50 and 100 SMAs stand. Ethereum has launched the first mainnet shadow fork in preparation for Merge, which should help keep the demand on for this cryptocurrency.
Litecoin LTC Live Chart
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