Ethereum Nears Technical Resistance at ATHs; Litecoin Undervalued

4 min readDec 2, 2021

Altcoins are rallying as Ethereum leads the way. Will the market continue to display strength in the last month of this chaotic year, or will Santa be late?

Let’s dig in.

Three Reasons To Own Litecoin

As the world’s 14th-largest crypto by market cap, Litecoin is positioned as a complimentary asset to bitcoin which most crypto portfolios already include due to its resilience and staying power.

Check out the full article here!

Dear readers,

The purpose of this newsletter is to provide context to cryptocurrency markets. This analysis takes time to write-up and it’s released every Monday and Wednesday. I am not perfect and this is not a science — nor is this newsletter a signals service. While I cannot promise perfection I do my best to be honest and transparent. I am also working on keeping my wording simple and to the point. Please bear with me.

Thank you for reading.

Feel free to contact me with feedback on contact@chrisoncrypto.com.

Technically speaking

ETH Shows Relative Strength

ETH/USD rallied to all-time high territory following a retest of $4,000. Investors front-ran the 20-weekly EMA — now situated at $3,740 — and pushed the crypto up over 22% to $4,794 at the time of writing.

While the stochastic Relative Strength Index has entered overbought territory, market action is trending positively, and as discussed before, the stochRSI can be sticky in favour of the trend for sometime before cooling off.

Meanwhile, at a value of 59, the daily relative strength index has room for upside. Still, prices are approaching the daily Super-trend resistance, which is something to keep an eye on. Weakness above or deviation behaviour (wicks) with candles closing under resistance ($4,900) would mean further consolidation is likely.

In that case, ETH/USD might follow BTC/USD in its ranging behaviour.

LTC/USD retested the 200-daily EMA — deviating slightly below to $182 — before bulls found their footing.

While the LTC tends to follow in bitcoin’s footsteps, the macro thesis is that Litecoin is fundamentally undervalued — so volatile moves relative to bitcoin should come as no surprise. Bear in mind, while it has glimpsed ATHs, Litecoin has yet to decisively surge passed it’s 2017 all time high into price-discovery mode. Due to its inherent inherent volatility (relative to majors), this can change very quickly.

Levels to Watch

Regardless, the next resistance to conquer which could set a cascading effect in motion is $248. Until bulls can take out that level, then the crypto could range above $200 until one direction gives way.
Below $200 and a trendline retest becomes a distinct possibility ($171).

Litecoin is at a 28% discount from the local high.

Compound fakeout and reclaim

COMP/USD deviated below the range bottom and is setting the stage for a strong rally, if the floor holds. The great thing about this asset (and most assets sitting at the lows) is that invalidation is simple now that the deviation is complete.

Levels to watch

Technically, COMP/USD bulls will likely defend $274 on a daily closing basis.
$350 could be a temporary trouble area, but once $392 is flipped into support then acceleration to the range high is probable.

DYDX Rally soon?

DYDX/USD retested the lows and is currently attempting to reclaim $14.

The exchange token has printed daily bullish divergences on both the stochastic and standard RSI, meaning an explosive upside move is around the corner. Losing $12.5 on a daily closing basis would be a red flag, but provided buyers keep showing up at these prices it’s likely the coin will benefit from technical tailwinds in the coming days. $17.6 and $20.5 are the bullish targets.

Final thoughts

Please keep in mind that when I choose to present certain data over others, it’s not because I’m avoiding warning signals, but because there’s nothing interesting to talk about. Cryptocurrencies don’t necessarily respect the same indicators and every chart tells a slightly (or completely) different story. TA is like having a tool box and applying them in whichever configuration works and repeating that process until it breaks — then you start all over again. I’m not claiming any expertise that’s just my opinion.

Catch you later.

p.s. This is my opinion. It is not financial advice.

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