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Ethereum, Bitcoin, Ripple and Litecoin price prediction: ETH/USD absolute winner at the beginning of 2018

  • Ethereum the big Crypto winner in January
  • Bitcoin, Ripple and Litecoin show similar behaviour: Is it time for a return to the mean?

Similar patterns with different results

BTC vs XRP vs LTC vs ETH on the 4H charts

ETH/USD

Ethereum has been the big winner of January, as we can see in the chart below. ETH mainly picked up steam during the second week of the past month, when it diverged paths from the rest of the Crypto board. Since then, Ethereum has been steadily keeping its edge against the other Cryptocurrencies. That said, besides this trend divergence, much more are the similarities, as we can spot very similar Momentum indicators across the Crypto board for the last couple of weeks, with every digital currency reacting to the "external" events in a similar manner.

We are now focusing in a possible turning point, where the trailing Cryptocurrencies might encounter some resistance, with indicators proposing upcoming price surges. Meanwhile, Ethereum is in the opposite position, trading just above a main trendline and showing some exhaustion signs in the indicators.

Ethereum: downside potential is more likely, but everything is possible

ETH/USD 4H chart

ETH/USD

Ethereum is trading in the final steps of a triangle. This situation has been developing for several days and it is still difficult to bet on a certain scenario.

MACD is very flat, supported at the equilibrium level. The indicator is not giving clear information right now, and it might go to any direction.

Directional Movement Index is at the equilibrium point, with buyers and sellers close to being at the same level, with sellers coming from upper levels. That kind of scenario doesn't bring much statistical value either, so we should wait until it develops further to define the next steps to take.

Ripple showing upside potential

XRP/USD

MACD is showing a very flat profile in the Ripple 4H chart, trading very close to the equilibrium line but still in negative territory. This indicator is not giving clear information.

Directional Movement Index brings a bit more to the analysis, as buyers are still at low levels and with some room to grow. Moreover, the sellers are below the ADX, showing a certain weakness, which should back a bullish scenario.

BTC/USD 4H chart

BTC/USD

Bitcoin is trading in a very similar situation than Ripple and Litecoin. Among the three coins, BTC is the one that has performed better during January and its referential status on the Crypto board might attract more interest from traders once a new bullish leg is triggered.

MACD in the Bitcoin 4H chart has a slightly more positive profile than in Ripple's, with an attack angle from the 0 line that gives better chances of a clean cross to the upside.

Directional Movement Index, just as in the Ripple chart, has room to grow, with D- trading below ADX.

LTC/USD 4H chart

LTC/USD

Litecoin is, among the Cryptos analyzed in this article, the one that has performed worse during January. Probably because of it, its chart is technically more deteriorated, with an expansive triangle with a bearish inclination. Only the price levels acquired in past sessions are keeping LTC from lower price areas.

MACD is showing a downside inclination that should be soon corrected by Litecoin price action to avoid giving more amplitude to the bearish move.

Directional Movement Index, just as in the Ripple and Bitcoin's examples, has room to grow, with D- moving below ADX.

Conclusion

These are interesting times in the Crypto sphere. The current technical picture should favor certain spread trading strategies. Ethereum's price action needs to be tracked closely, as it might give signals to open positions in Bitcoin and Ripple. On the other hand, Litecoin might be on the losing side, urgently needing of another money inflow to ensure it doesn't go into another big bearish run.

Author

Tomas Salles

Tomas Salles

FXStreet

Tomàs Sallés was born in Barcelona in 1972, he is a certified technical analyst after having completing specialized courses in Spain and Switzerland. He expanded his technical training following the guidance of great experts on the financial markets.

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