If we draw Fibonacci retracements from the December low to the January high of both Ethereum and Litecoin, we see similar price action taking place.
The majority of trading during the week in both Ethereum and Litecoin took place at the 50% retracement level.
The bearish movements over the past 24 hours have resulted in both cryptocurrencies dropping below the 50% retracement level.
After breaking below the 50% retracement level, Ethereum met support at $114 which was the point of a breakout in late December and has also come into play as support since.
Litecoin is similarly meeting support after dropping below its 50% retracement level.
Litecoin is meeting support at $30 which is a psychological point for traders and also has previously come into play as support.
The more recent bearish conditions have seen altcoins such as Ethereum and Litecoin underperforming when compared to Bitcoin.
Over the past two weeks, Bitcoin has depreciated 3% in value whereas Ethereum and Litecoin have depreciated 20% and 7% respectively.
Ethereum largely outperformed other major cryptocurrencies during a surge which took place from mid-December to early January.
However, it has since been underperforming all other major cryptocurrencies.
- Ethereum and Litecoin are showing similar price action when Fibonacci retracements are drawn from the December low to the January high.
- Both Ethereum and Litecoin traded around the 50% retracement level for the majority of the week but a drop over the past day resulted in Ethereum and Litecoin meeting support at the $114 and $30 levels respectively.
- Ethereum has underperformed compared to other major cryptocurrencies over the past two weeks. Ethereum had previously outperformed from mid-December to early January.