The crypto market has been bleeding since the week began on Monday. Moreover, the declines are a continuation of the downtrend that kicked in at the beginning of August. However, the cryptos are correcting slightly higher on August 7. Bitcoin (BTC), for example, has reclaimed the critical $7,000 level while it is up over 2% on the day. The majority of digital assets in the top 20 bracket are showing subtle bullish corrections with NEO spiking over 6%. Bitcoin Cash (BTC), Dash (DASH) and Ethereum Classic (ETC) are up more than 3% on the day.
Ethereum (ETH) Price Analysis
Ethereum price is bullish on Tuesday, however, the upside is still restricted. The bulls are seeking a breakthrough at $410, although it has traded intraday highs of $410.30. The trading yesterday was highly bearish which pushed ETH/USD back to the drawing board at $400.00.
The price bounced on testing the key support area at $400 before the close of the trading session on Monday. The resistance at the 50% Fib retracement level between the highs of $413.35 and the lows of $400.15 at $406.75 limited the gains during the Asian trading hours. Lower corrections at this position were supported above $404 as well as the trendline as shown on the chart below. Another spike occurred at 06:00 (GMT) taking Ethereum marginally above $409, but the trend lost momentum before hitting $410.
The lower corrections that followed found support at the 50% Fib level. ETH/USD traded above $410 but is currently seeking support above the 61.8% Fib level at $408.36. The trendline support is also in the same position. Technically, the trend has turned bearish, besides the stochastic is reaching into the oversold levels. The gap between the moving averages is increasing confirming that the bears are regaining control.
However, it is likely that the bears are exhausted after the overarching declines and buyers can still find entry positions above the short-term 61.8% Fib support. The current resistance is at $410 while the key resistance is at $414. In addition to that, the critical resistance is at $418.01 and the ultimate resistance stands at $420.
Litecoin (LTC) Price Analysis
Litecoin (LTC) is slowly but steadily redefining its trend. In spite of the declines, LTC/USD has maintained the support at $72.00. After forming a subtle neck and shoulders pattern, the price spiked further today while embracing the 23.6% Fib level with the last high leg of $76.78 and a low of $72.35 support at $73.39. The engulfing candle has settled in a short-term bullish flag pattern pending another upside breakout.
Consequently, you should note that the crypto is trading within a contracting triangle nearing a breakout. The trend is likely to turn bearish in the medium-term. However, a break above the current resistance at $75.00 will pave the way for movement towards the critical $80.00.
Litecoin is also range bound between the upper limit at the 61.8% Fibonacci level and the lower limit at $74.50. Various technical indicators on the chart show bullish signs for the near-term. In addition, the 50 SMA is maintaining its position above the 100 SMA signaling that the bulls still got the power for upside corrections.
Stellar (XLM) Price Analysis
Stellar price, just like Ethereum and Litecoin is correcting higher on the day. The buyers entered after the XLM/USD plunged to lows marginally below $0.230. The crypto is currently on a journey of breaking barriers following the overarching declines that started at the beginning of August.
XLM/USD is exchanging hands above $0.24, however, lower corrections are imminent due to the double-top pattern that has been formed on the 15-minutes chart. The trendline has been supporting the gains today, therefore, it is likely that the price will be rebound on touching the support line. In the meantime, a support above $0.240 is vital to the buyers who are aiming at $0.250 in the short-term.
The stochastic is ranging in the overbought region while the 50 SMA is moving further up above the 100 SMA, which says that the bulls still have the upper hand. If the above support areas give in, $0.242 and $0.240 will come in handy to prevent further declines.