After massive hikes were noted across the global altcoin market just yesterday, gains dipped slightly over the last 24 hours due to a cooldown. If this trend continued over the coming days, altcoins such as Ethereum, Binance Coin and Bitcoin Cash may remain restricted below key resistance areas before their next rally.
Ethereum [ETH]
Source: ETH/USD, TradingView
Ethereum’s hike to record levels during May was of particular significance for a couple of reasons. Not only did its rise inject bullish sentiment into certain alts, but it came at a time when Bitcoin was consolidating below $60,000. This indicated that ETH was gradually stepping away from Bitcoin’s shadow.
However, the crypto dump witnessed on May 20 eventually crippled BTC down to a low of $30,000 and the aftershock was felt in ETH too- thereby proving that market sentiment was still heavily linked to BTC. While ETH fell to a low of $2,005, BTC’s recovery enabled the world’s largest alt to register a comeback of its own.
On the 4-hour chart, ETH reclaimed region above 23.6% Fibonacci level ($2,316) and tested the 38.2% Fibonacci level ($2,676) at the time of writing. Interestingly, this area also coincided with the 50-SMA (yellow) and was an important region to reclaim. A successful breakout would open the possibility of a 20% jump towards 61.8% Fibonacci level where some sideways movement might be observed before the next upswing.
Naturally, this rise would also benefit key alts in the market. In case of a probable pullback, a reliable support region rests around $2,300-2,400.
MACD saw northbound movement over the past couple of days and bullish momentum was rising according to the histogram. A rise above half-line would coincide with a favorable prediction. Meanwhile, Stochastic RSI’s overbought nature suggested that ETH might see a slight dip before breaking above its resistance.
Binance Coin [BNB]
Source: BNB/USD, TradingView
With Ethereum showing making inroads towards a speedy recovery, Binance Coin latched on to positive sentiment and regained the region above $300. On the 4-hour timeframe, BNB targeted a rise above its 50-SMA (yellow)- a development that could culminate into a 26% rally towards $485. An extremely bullish outcome could see gains all the way up to $542 and 200-SMA (green), although this would be a gradual increase. On the other hand, pullbacks can be countered around $300.
RSI dipped at the time of writing but retaining above 41-42 could prevent a sharp downfall. Awesome Oscillator was above the half-line as momentum sided with the buyers.
Bitcoin Cash [BCH]
Source: BCH/USD, TradingView
As mentioned in a previous analysis, Bitcoin Cash saw sideways movement after a breakout above $771.4-resistance and its 50-SMA (yellow) was denied by the sellers. However, the bulls were hot on their heels as BCH tested this upper ceiling multiple times over the past few sessions. With 20-SMA (red) ready to provide support in case of a minor dip, BCH was tipped to rise above this barrier over the next 24 hours. This next target lay around $1,030 and 200-SMA (green).
Squeeze Momentum Indicator highlighted bullish market momentum and if the broader market remains constant, it seemed like only a matter of time till a breakout was enforced. Interestingly, the Supertrend Indicator placed a buy signal at the current price and confirmed with the SMI.
