Cryptocurrency Analysis: Ethereum Holds Strong amid Broad Correction

The crypto-coin market is very active today, as yesterday’s string of break-outs and pull backs triggered volatility in the majors and the small cap coins as well. Ethereum’s surge reached as high as $400 in early trading, but the decline in Bitcoin “infected” the other coins during the US session. As we noted in our long-term outlook, both BTC and ETH are in overbought territory, and that could mean that a consolidation period or a deeper correction is in the works.

Bitocoin’s sell-off accelerated after it broke the swing low at $2600 but it bounced off the support level near $2450. Further support is found at $2350 and at $2150, which corresponds with the rising long-term trendline. The short-term trend switched to negative, while the long-term trend is still intact. Investors should be looking for entry points as the price falls, while short-term traders should wait for bullish signs before entering new

Ethereum remains the strongest major short-term, as it is still inside the rising trend channel on the USD pairdespite this afternoon’s dip. The currency is now trading right at yesterday’s maximum near $350 after a brief spike below short-term support. The $300 level is the initial target for a correction, as it is right at the rising short-term trendline currently. The BTC pair is still in a strong uptrend as the value of ETH is getting closer and closer to BTC’s

Litecoin experienced a failed break-out attempt along with Monero, yesterday, as it briefly rose above $32, but fell back to the long-term consolidation pattern amid the Bitcoin correction. The long-term picture is unchanged despite today’s volatility with the coin still being in a corrective phase following April’s surge. The short-term trend is currently neutral, with support levels found at $27.50, $26.25. The BTC pair is little changed as it is still stuck in a range between 0.10 and 0.115.

Ripple failed to gain relative strength against Bitcoin and it continues to trade in a long-term corrective pattern, although the break below the long-term trendline on the USD chart is a bearish sign. A sustained below $0.23 would warn of a decline towards $0.20 with further strong support at $0.18. The BTC pair is weak, but the currency is still holding on above the key support
Monero failed to break-out to new all-time highs uyesterday and fell below the crucial $50 level today, being dragged down by BTC. The short-term trendline has been broken and more consolidation is expected, with a possible re-test of the long-term trendline that is currently found near $42.
The Dash/USD pair is still looking bullish despite today’s volatile session, as the coin rose as far as $200 after breaking out above the $150 level and hitting our targets for the move. If the broad correction continues, the coin has further support near 140, and at the prior correction-low near 130.

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