Bakkt’s long-awaited Bitcoin futures contracts launch did not elicit the market reaction most traders were hoping for. Instead, Bitcoin continues consolidating without a clear sign of where it’s heading next while altcoins are giving mixed signals. The following technical analysis will focus on the different scenarios that could play out for Ethereum, XRP, and Litecoin.
Since the beginning of the month, Ethereum surged nearly 37 percent to reach a high of $225 on Sept. 19. Following the recent peak, Ether retraced 9 percent. Now, a number of indicators are signaling a further decline.
A spinning top candlestick pattern developed on ETH’s 3-day chart. This technical formation represents indecision about the future direction of this cryptocurrency since neither the bulls nor the bears were able to gain control of the price action.
Nonetheless, the current candlestick appears to be moving below the 150-three-day moving average. This, in combination with the spinning top candlestick pattern, increases the probability of a correction.
If Ethereum indeed closes below the 150-three-day moving average, which is acting as a strong point of resistance, its market valuation could experience a sharp decline down to the 100-three-day moving average: $181.
Conversely, a spike in volume that allows ETH to close above the 150-three-day moving average could signal the start of an uptrend that takes this cryptocurrency up to the 200-three-day moving average: $317.
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