So, what next?
Ethereum is comparatively weaker than Bitcoin, as it has already broken below the 50-day SMA. It is currently at a critical 50 percent Fibonacci retracement of the rally from $129.78 to $409.42. A break below this crucial support can sink the digital currency to $236 levels, which is a 61.8 percent Fibonacci retracement of the upmove.
However, we don’t find an attractive short trade setup, which has a good risk to reward ratio. Therefore, we remain neutral on Ethereum.BCH/USD
Bitcoin Cash has broken down below the range of $523 to $736. Its next support is at $470 from where it had bounced on Sept. 5. If this level breaks, the cryptocurrency may plummet to $440.
On the other hand, if the digital currency finds support at $470, it is again likely to enter into the range.
We don’t find any attractive long or short trading setups, therefore, we remain neutral on Bitcoin Cash.XRP/USD
Ripple could not breakout of the downtrend line and rally above $0.23500, therefore, our long trade was not triggered.
The digital currency is perilously close to breaking down below $0.19300 levels that will complete the bearish descending triangle pattern, which has a lower pattern target of $0.085. However, we expect $0.13500 to act as a strong support because this level has not been broken down on a closing basis since early-May of this year.
We recommend a short trade on ripple on a close below $0.19000 with a stop loss of $0.22500. Please cover 50 percent of the shorts closer to $0.15000 levels, and trail the remaining position with a close stop loss.LTC/USD
Litecoin has broken down the descending triangle pattern. It can fall to $52 and thereafter to $41 levels. Again, a stop loss and the target objective don’t justify a short trade. Therefore, we are not recommending any trade on it.
*Bitcoin, Ethereum and Litecoin charts are provided by HitBTC exchange.