The Crypto Comms #6
Last week was the first green weeks in over two months. Desperation, fear, anger have gripped the market and it’s no surprise considering the absolutely relentless assault on portfolios.
Prices are severely depressed. Ethereum is just above 3-digit territory and Litecoin is staging a miraculous come-back.
In this issue:
- Ethereum analysis
- Litecoin analysis
- Latest happenings
- Listening material
Ethereum/Dollar is down 4% on the week and is awaiting instructions from the all-mighty Bitcoin on what to do next.
Price remains suppressed well below the daily short-term trend (20-ema) as internal market stressors persist.
As a brief side note, the contagion effects of the TerraLuna scam are still underway even though FTX appears eager to acquire every project under the sun. Similarly, Simon Dixon’s bnktothefuture is keen on finding a solution for Celsius.
ETH/USD exchanges hands at $1,079 at the time of writing. Prices closed below the H4 (4-hour) trend (50-ema), opening the door for more downside in the coming hours. The first area to look for support is $1,000. If more insolvency rumours turn out to be true, a retest of $878 could be in the works.
ETH/BTC has reached a point of interest too. Currently consolidating between 0.05–0.056 Sats. If 0.05 does not hold, the next level to pick up some ETH is 0.043. But major events would have to precipitate another 14% drawdown against the Bitcoin pairing. On the flipside, the 0.06 Sat level is a take-profit area, assuming there won’t be a v-shaped recovery for risk assets.
In my view, the overall market is absolutely decimated, so I am a buyer not a seller. This is a contrarian view and has yet to be confirmed by price-action.
Litecoin/Dollar continues to benefit from the unlikely tailwind of ‘not being on company balance-sheets as collateral’. Besides that, mweb adoption has been on the increase, per raw explorer data. The former dynamic probably explains the massive uptick on the LTC/BTC pairing better so let’s not delude ourselves that crypto degenerates have learned what real value is. LTC/BTC is up 31% week on week, and 48% since June 14.
Meanwhile, LTC/USD gained 10% on the week, and has clearly held up very well considering the desperation and exasperation in markets. Admittedly, I too am exhausted seeing good projects suffer because of scams, malpractice and just plain negligence.
Technically, price is below the D1 primary trend (20-ema) at the time of publishing. A decisive break of $55 would open the door to $65-$70.
On the other hand, $47 could act as a pivotal support area in the immediate short term. Prices are incredibly depressed across the board, however, so trying to knife-catch lower levels is just extreme greed in my view.
Litecoin is currently less valuable than Solana — vapourware which does not work and exists solely on the momentum of venture-capital firms and marketing departments.
- UK Treasury Backtracks Plans to Arbitrarily Spy on Every Crypto User
- Cultivating The ‘All or Nothing’ Mindset
- Intelligence Report: Global Bitcoin Adoption to hit 10% by 2030
The purpose of this newsletter analysis is to provide context to current events and cryptocurrency markets. It is released every Monday and Wednesday. I am not perfect and this is not a science — nor is this newsletter a signals service or financial advice. While I cannot promise perfection I do my best to be honest and transparent.
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