(+) Ethereum: Death Through Economic Abstraction?

While the cryptocurrency segment experienced encouraging short-term moves, the broader picture remained negative and today, the major coins dropped significantly, out-of-the-blue in early trading. On average the top coins are down almost 10% from their intraday highs, and with BTC also shedding around 5%, the total value of the market declined by more than $15 billion compared to yesterday’s levels, dropping below $220 billion.

Technically speaking, the short-term picture remains mixed after the plunge, with some of the coins still holding up in their short-term uptrends, while the previously weaker currencies got deeper in their negative patterns. Monero, IOTA,  NEO, and Litecoin are still on short-term buy signals, similarly to Bitcoin, since their respective uptrends are intact, while Dash, EOS, Ripple got downgraded following the move.

As we emphasized before, the recent rally only qualified as a counter-trend move, and traders should still remain cautious with new positions even in the bullish short-term coins, as the long-term charts are overwhelmingly bearish.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is hovering around the $7000 level after the sharp selloff, trading just above the rising short-term trendline. The coin is now back below the major support/resistance zone between $7200 and $7300 and a test of the key $6750 level is possible in the coming days. The largest digital currency is close to a short-term trend change, but for now, bulls successfully defended the weak uptrend. Below $6750, further support levels are found near $6500, and $6275, while resistance is ahead between $7650 and $7800.

ETH/USD, 4-Hour Chart Analysis

Ethereum failed to show any kind of relative strength in the past weeks, and that remained the case during today’s broad selloff, confirming the weakness of the second largest coin. ETH is still on short- and long-term sell signal and traders should avoid entering new positions here. The currency is already testing the key $260 support, with a break below it now being likely. The next major support level is found around $235 while resistance is ahaead between $275 and $280, near $300, and around $335.

Flash-Crash Hurting Altcoins Across the Board

XRP/USDT, 4-Hour Chart Analysis

Ripple also confirmed its recent weakness, similarly to Ethereum today, plunging below several support levels during the flash crash and triggering a short-term sell signal following its violent counter-trend rally. XRP is now back near the $0.30, leaving the dominant broad downtrend intact and the long-term sell signal in place as well. Key support below $0.30 is found at $0.26, while resistance is now ahead at $0.3130, $0.32, and $0.35.

XMR/USDT, 4-Hour Chart Analysis

Monero remains the strongest coin from a short-term perspective, bouncing off the key $125 level today, with the long-term $150 resistance level still being in sight. Our trend model is still on a short-term buy signal too, despite the flash crash, but a long-term trend change is still far from being confirmed. Traders could still enter new, smaller short-term positions on the selloffs, as the segment remains bearish overall, with further support levels found at $120, $108, and $100.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Source: https://hacked.com/ethereum-death-through-economic-abstraction/

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