Ethereum’s price maintained a volatile trajectory over the past few months after repeated price swings in the market. On 25 October, the 2nd largest crypto-asset recorded its most recent price pump, hiking by 16 percent in a single day and recovering most of the losses suffered a couple of weeks prior. At press time, Ethereum continued to consolidate under the $190 range. However, major bearish signs were evident on the chart.
Ethereum’s 1-day chart highlighted that since the month of August, Ethereum’s price had breached two major bullish patterns and it was followed by an identical hike after the depreciation period. From 5 August to 6 September, ETH navigated within the trend lines of a falling wedge and the token’s valuation declined by around 28 percent over a period of 32 days. The bullish breakout saw ETH recover 24 percent of its losses over the last period, but an immediately bearish pullback invalidated its bullish hike.
A similar pattern surfaced back in October, wherein a familiar falling wedge was recorded in the charts. The value depreciated down by 18 percent over 15 days and it was followed by a recovery of 16 percent. It can be observed that both the hike and decline were fairly close in terms of percentage in the previous two patterns.
At press time, Ethereum’s price was navigating within an ascending channel, increasing the possibility of a bearish breakout in the future. The incline in terms of valuation over the pattern was registered to be around 12 percent. If the bearish breakout continues to follow past trends, a drop of around 10 percent in valuation may surface for Ethereum over the next few weeks. Such a substantial drop could see ETH breach the support at $177.45, and a possible consolidation under it may happen.
The MACD line also suggested that a bearish crossover was in the cards for ETH, suggesting that the breakout may occur sooner rather than later.
Ethereum has struggled to maintain a high price valuation lately and recent market trends suggest that its price will continue to struggle for a while.
Litecoin’s ailing price prepares for breach of descending channel
Litecoin noted a sharp fall on 15 November, a fall that caused its price to fall from $59.97 to $55.63. This 7.24% fall was followed by the price of the coin climbing up. However, it fell soon after the rise. The price of Litecoin at the time of writing hovered at around $58.07 with a market cap of 3.75 billion, while noting a trading volume of $2.90 billion.
Despite the falling price, however, Litecoin noted the formation of a bullish pattern that might provide a boost to its price.
The hourly chart for Litecoin [LTC] saw a descending channel extending along with the falling price. The pattern, characterized by two sloping trend lines, marked the lower highs of LTC at $60.26, $59.16, and $59.03 and lower lows at $59.38, $58.94, and $58.53. As the price remained constricted within the downward trend, a breach in the pattern might lead to the price of LTC surging.
The 50-day moving average underwent a crossover with the 100-day moving average, indicating a bullish move. The 100-day moving average dominated the LTC market for over five days and the coin lost 4.08% of its value. However, with the 50-day MA leading the charge, an upward surge might be coming soon.
The MACD indicator noted strong bearish momentum in the market, as the MACD line remained dormant under the signal line. On the other hand, the Relative Strength Index highlighted a change in tides as the signal line bounced back from the oversold zone and was pointing up.
Litecoin’s falling price might find respite with a breach of the descending channel. However, the coin might undergo further devaluation before it could note a spike.