Ethereum, Ethereum Classic, Bitcoin Cash Price Movement Analysis for 16th May, 2021

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Ethereum may go through a period of consolidation before making another move above $4,000. Ethereum Classic is currently trading inside a bullish dropping wedge trend. If Bitcoin Cash falls below $1,160, it can experience a prolonged sell-off.

Ethereum [ETH]

Since reaching an all-time high over $4,000, Ethereum has slowed and seen dips in recent days. During this process, however, a strong support area between $3,570 and $3,645 emerged. According to Awesome Oscillator, the wave of selling pressure has not yet subsided, and ETH may see some further stabilisation before the next swing.

The RSI signalling overbought conditions and fell below 70, but it remained in bullish territory at the time of publishing. With stable volumes and purchasing pressure still pushing the economy, a breakdown seemed improbable.

 

Ethereum Classic [ETC]

Source: ETC/USD, TradingView

The most recent rally in Ethereum Classic indicated that it reaped the most benefits from ETH’s bull run over $4,000. However, with ETH still in a consolidation mode, gains in ETC’s business were minimal as well. On the regular timeframe, the crypto-asset traded in a dropping wedge fashion, with lower highs and lower lows. On the positive hand, this wedge reflected a bullish trend, which usually results in an upside split.

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Support levels of $78.1 or $52.2 could prompt buying and provide a breakout opportunity, but the result would be heavily influenced by wider market cues. If the result is positive, ETC could return to $120 or even $130.5. The MACD line moved below the Signal line, indicating bearish market conditions. Over the last few days, OBV’s flat-like movement indicated that purchasing pressure equalled selling pressure.

Bitcoin Cash [BCH]

Source: BCH/USD, TradingView

Although a previous report identified $1,200 as the bulls’ cut-off point, the daily timeline revealed a consistent support area at $1,160. However, a drop below this region and the 20-SMA could put Bitcoin Cash’s short-to-medium-term trajectory in jeopardy. Another round of selling would expose support levels at $940 and $850.

At the current market, the SuperTrend Indicator blinked a buy alert, with a stop-loss about $940 and the 50-SMA (yellow). The Stochastic RSI showed a bullish convergence in the oversold region, indicating that BCH will remain above $1,160 in the near future.

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