The upcoming Bitcoin halving stirred up the cryptocurrency sphere pretty hard. For a majority of altcoins, the aura surrounding the auspicious event has been good. Ethereum increased steadily; however, Ripple reached one of the lowest levels of 2017 earlier in the previous week.
For altcoins, such as LTCUSD, things haven’t been much different than they were earlier in the year. There have been highs and lows. But apparently, investors seemed to stay away from Litecoin.
A highly probable correction in ETHUSD post Bitcoin halving
To understand why there is a likely correction in Ethereum can be understood by observing the daily chart for ETHUSD. Source: TradingView.com
Ethereum currently broke out of a rising channel. A similar formation was displayed by ETH earlier in the year, as can be seen from the chart. A trendline shows the rapid decline following the breakout.
The day’s range for ETHUSD is $208.49 — $214.72. However, if it starts falling below the Exponential Moving Average at $200, the decline could be rapid. A drop of the similar magnitude that occurred earlier in the year could take ETH to lows of $140. Therefore, investors should properly analyze the risks before making any investments in Ethereum currently.
Litecoin: Not riding on the Bitcoin fanfare
It has been a different story altogether for Litecoin, unlike most of the other Altcoins. Here is the daily timeframe for LTCUSD.
LTC appears to be in a consolidated zone. The MACD is neither bullish nor bearish. The contraction in the traded volumes of Litecoin is not a pleasant sight either.
The Bollinger bands show LTCUSD to be moving between the upper end of the band and the central EMA line.
Overall, things are clearly not bullish for Litecoin at the moment.