Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – March 1st, 2021

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – March 1st, 2021

Ethereum

Ethereum fell by 2.63% on Sunday. Reversing a 1.07% gain from Saturday, Ethereum ended the week down by 26.54% to $1,422.02.

A mixed start to the day saw Ethereum rise to an early morning high $1,469.96 before hitting reverse.

Falling well short of the first major resistance level at $1,518, Ethereum fell to a mid-afternoon intraday low $1,292.76.

The extended sell-off saw Ethereum fall through the first major support level at $1,411 and the second major support level at $1,256.

Finding support at the 38.2% FIB of $1,292, Ethereum revisited $1,440 levels before easing back.

The first major support level limited the downside late in the day.

At the time of writing, Ethereum was down by 0.62% to $1,413.22. A mixed start to the day saw Ethereum rise to an early morning high $1,430.74 before falling to a low $1,413.22.

Ethereum left the major support and resistance levels untested early on.

For the day ahead

Ethereum would need to avoid a fall through the pivot level at $1,395 to support a run at the first major resistance level at $1,497.

Support from the broader market would be needed, however, for Ethereum to break out from Sunday’s high $1,469.96.

Barring an extended crypto rally, the first major resistance level and resistance at $1,500 would likely cap any upside.

In the event of a breakout, Ethereum could test the second major resistance level at $1,572. The 23.6% FIB of $1,579 and resistance at $1,600 would likely cap any upside, however.

Failure to avoid a fall through the $1,395 pivot would bring the first major support level at $1,320 and the 38.2% FIB of $1,292 into play.

Barring another extended sell-off, however, Ethereum should steer clear of sub-$1,200 levels. The second major support level at $1,218 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $1,320

Pivot Level: $1,395

First Major Resistance Level: $1,497

23.6% FIB Retracement Level: $1,579

38.2% FIB Retracement Level: $1,292

Story continues

62% FIB Retracement Level: $830

Litecoin

Litecoin fell by 3.63% on Sunday. Reversing a 1.02% gain from Saturday, Litecoin ended the week down by 27.18% to $165.72.

It was a mixed start to the day. Litecoin rose to an early morning intraday high $173.17 before hitting reverse.

Falling short of the first major resistance level at $179.25 Litecoin fell to a late afternoon intraday low $153.07.

The sell-off saw Litecoin fall through the first major support level at $166.00 and the second major support level at $160.00.

Litecoin also fell through the 38.2% FIB of $163.

Finding late support, however, Litecoin broke back through the support levels and the 38.2% FIB before ending the day at $165 levels.

At the time of writing, Litecoin was down by 0.88% to $164.26. A mixed start to the day saw Litecoin rise to an early morning high $166.38 before falling to a low $164.04.

Litecoin left the major support and resistance levels untested early on.

For the day ahead

Litecoin would need to avoid a fall through the $164 pivot level to support a run at the first major resistance level at $175.

Support from the broader market would be needed, however, for Litecoin to break out from Sunday’s high $173.17.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of an extended breakout, Litecoin could test the second major resistance level at $184.

Failure to avoid a fall through the $164 pivot level would bring the 38.2% FIB of $163 and the first major support level at $155 into play.

Barring another extended sell-off, Litecoin should steer clear of the second major support level at $144.

Looking at the Technical Indicators

First Major Support Level: $155

Pivot Level: $164

First Major Resistance Level: $175

23.6% FIB Retracement Level: $195

38.2% FIB Retracement Level: $163

62% FIB Retracement Level: $110

Ripple’s XRP

Ripple’s XRP fell by 4.45% on Sunday. Reversing a 1.82% gain from Saturday, Ripple’s XRP ended the week down by 23.57% to $0.41661.

A bullish start to the day saw Ripple’s XRP rise to an early morning intraday high $0.43831 before hitting reverse.

Falling short of the first major resistance level at $0.4541, Ripple’s XRP slid to a late afternoon intraday low $0.3934.

Ripple’s XRP fell through the first major support level at $0.4231 and the second major support level at $0.4098.

Finding late support, Ripple’s XRP revisited $0.42 levels before falling back. The first major support level pinned Ripple’s XRP back late in the day.

At the time of writing, Ripple’s XRP was down by 0.74% to $0.41351. A mixed start to the day saw Ripple’s XRP rise to an early morning high $0.41862 before falling to a low $0.41351.

Ripple’s XRP left the major support and resistance levels untested early on.

For the day ahead

Ripple’s XRP will need to move back through the $0.4161 pivot level to bring the first major resistance level at $0.4388 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break out from Sunday’s high $0.43831.

Barring an extended crypto rally, the first major resistance level and resistance at $0.44 would cap any upside.

In the event of an extended rally, Ripple’s XRP could test the second major resistance level at $0.4610 and the 38.2% FIB of $0.4632.

Failure to move back through the $0.4161 pivot would bring the first major support level at $0.3939 into play.

Barring another extended sell-off, however, Ripple’s XRP should steer clear of the second major support level at $0.3712.

Looking at the Technical Indicators

First Major Support Level: $0.3939

Pivot Level: $0.4161

First Major resistance Level: $0.4388

23.6% FIB Retracement Level: $0.5320

38.2% FIB Retracement Level: $0.4632

62% FIB Retracement Level: $0.3521

Please let us know what you think in the comments below.

Thanks, Bob

This article was originally posted on FX Empire

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Ethereum Price March Prediction: Down to $1,000 or Up to $2,500?

The Ethereum price has been under pressure in the past few days. After soaring to an all-time high of $2,045, the price has dropped by more than 30% as investors worry about the rising US Treasury yields.

What happened: Ether price was in a strong upward trend on Sunday last week. However, the price started falling as investors started to worry about its valuation and the fact that it seemed overvalued. Also, a warning by Elon Musk led to rising pressure of ETH and BTC prices. In the past, a sharp decline of Bitcoin tends to lead to more weakness in other cryptocurrencies.

Further, Ethereum price and other risk assets declined as the US Treasury yields continued to rise. Last week, the ten-year yield of the US Treasuries rose to 1.50%, the highest level since February last year. At the same time, the spread between the 30-year yields and 5-year yields rose to the highest level in more than 5 years.

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High yields usually have a direct impact on risk assets like cryptocurrencies, emerging market currencies, and technology stocks. Indeed, the Nasdaq 100 index has dropped by more than 5% in the past few days.

Ethereum price technical outlook

As I wrote last week, the sharp decline of the ETH price was expected. Furthermore, the currency was previously forming a rising wedge pattern that is usually a bearish factor. The price also moved below the 25-day and 50-day moving averages on the daily chart, It is also about 40% above the ascending trendline that is shown in red.

Therefore, at this stage, the outlook for the currency is neutral. On the one hand, the price could move down and retest the important support at $1,000. On the other hand, it could retest its all-time high at $2,045 on its path towards $2,500. In my view, I believe that the latter option will happen.

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ETH price chart

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Ethereum Prices Recovering as Gas Fees Plummet

On Feb. 28, gas fees on Ethereum fell back to the $11.21 level. This is a considerable drop since transaction prices skyrocketed above $38.21 on Feb. 23.

Currently, an average transaction on Ethereum costs around $10.80, according to Etherscan.io.

As for the decentralized finance (DeFi) sector, a single token swap on Uniswap, Ethereum’s most prominent decentralized exchange (DEX), could cost anywhere between $217 and $286, depending on its priority:

Where Is Ethereum Heading Next?

The drastic surge in Ethereum (ETH) transaction fees occurred at a time when the whole crypto market crashed into the red zone on Feb. 22. On that day, ETH prices dipped below $1,700, falling over 12% on the day.

Since then, Ethereum has gone through a strong correction, mimicking Bitcoin’s (BTC) price trajectory. The correlation between the two assets has been high during the last week.

Ethereum fell to $1,300 on Feb. 28. Meanwhile, BTC’s red week saw its price drop as low as $43,000 — a 25% drop for the week.

As of press time, ETH is trading for $1,530, down over 21% from its all-time high. Bitcoin is expected to break out from a descending wedge to move towards $50,000 again.

EIP-3298 to Make Ethereum Stronger?

Ethereum’s network clog remains to be a heavy burden for the developers and traders. Following the gas-related troubles, founder Vitalik Buterin released a new ETH improvement proposal dubbed EIP-3298 on Feb. 26. It suggests removing gas refunds for the “SSTORE” and “SELFDESTRUCT” functions in Ethereum’s London update.

The former allows storing gas inside smart contracts. Using the latter, Ethereum’s clients can cover the cost of a transaction with the stored gas when prices are high. Users benefit from this through gas tokens like CHI and GST2 arbitraging the price of gas.

Some investors like ParaFi Capital’s Nick Chong think that the recent proposal may be a major factor contributing to gas prices falling back:

Vitalik recently proposed the removal of the gas refund tied to ‘SELFDESTRUCT’ on Ethereum in the London upgrade.

This has seemingly lowered demand for gas, driving down prices to double-digit Gwei.

Let’s explain what’s going on and why this matters for gas tokens ($CHI, GST) pic.twitter.com/wsdXUpwqYI — Nick Chong (@n2ckchong) February 28, 2021

EIP-3298 is scheduled for Q2 2021. If passed it may help Ethereum to regain some of the market share that it has lost to DeFi competitors like Binance Smart Chain (BSC).