After being bearish for several months. in March cryptocurrencies tried to turn bullish. The risk sentiment improving in financial markets which sent Bitcoin (BTC) above $48,000. Litecoin (LTC) and Ethereum (ETH) turned bullish as well and made some decent gains as Ethereum climbed above $3,500 while Litecoin bounced off the support zone at around $100. But the bullish move has ended this month and the downtrend seems to have resumed again.
Litecoin Daily Chart Analysis – MAs Have Turned Into Resistance
The $100 Support is Holding for LTC
Litecoin turned bearish in November after failing to break above $300 and the selling pressure continues to prevail. The highs keep getting lower and the last attempt to turn bullish ended below the support and resistance zone around $140. The next support at $100 continues to hold but now moving averages have turned into resistance on the daily chart and they are pushing the price toward the $100 level again.
This means that the support might actually break after being tested quite often. The whale activity has increased for LTC but that often is followed by a retreat and everything is looking bearish for this cryptocurrency. The MimbleWimble update didn’t help improve the sentiment either, so let’s see if the $100 support breaks soon.
Ethereum Daily Chart – The $3,000 Level Has Been Broken
Moving averages couldn’t stop the slide in Ethereum
Ethereum reversed higher in March, but the 200 SMA (purple) which acted as support last year, turned into resistance and rejected Ethereum. The push above the 50 daily SMA (yellow) was an impressive sign, but ETH/USD reversed back down after the rejection at the 200 SMA, losing more than $500.
The decline stalled at the $3,000 level, where the 50 and 100 SMAs were standing but today the decline has resumed again and ETH has slipped below $3,000. Ethereum has launched the first mainnet shadow fork in preparation for Merge, which should help increase the demand for this cryptocurrency, but at the moment the sentiment remains bearish in the crypto market, so we are not buying ETH right now.
ETH/USD