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Altcoins Price Analysis: Sudden Drop

Digital currency market has developed an upward trend during last few weeks. Someone assumed that it was reversing, someone was waiting for another decline. And they waited. Yesterday, September 5, the cryptocurrrency market for a short period of time has sharply lower. Most likely it was affected by the news that Goldman Sachs reverses course on Bitcoin trading desk.

However, until the last significant lows are overcome, it is too early to talk about the completion of the correction period. Perhaps, for most market participants, this price movement was slightly shocking. Nevertheless, traders should always remember that the non-linear nature of the market can present such kind of "surprises" without warning.

The most likely scenario for the development of the situation in the near future may be testing of minima with their subsequent overcoming and progressing even lower.

Ethereum

A few days ago, the Ethereum market formed a divergence on the MACD and Stochastic indicators. Today, the technical picture Ethereum on the two-hour timeframe demonstrated the breakdown of the support line of the last short-term growth channel, the price tested the support line of the lower projection corridor. The next target of the reduction is the key minimum of $ 249.93.

In the near future, we can expect a rollback to the resistance line of the main channel - $ 287.20. A retreat from this line may allow the market to form a new impulse of decline to the level of support for the forming downtrend - $ 234.20.

Litecoin

LTC/USD a few weeks developed an uptrend within a stable channel, but the divergence formed and the "black crosses" on the indicators MACD and Stochastic prompted the possible completion of the uptrend. And today the market reaction to the signals did not wait.

The impulse of the downward dynamics tries to overcome the support line of the rising corridor. Breakdown of the support line will open the way for quotations for further reduction. The purpose of the new downtrend pulse will be $ 52.50, and later the main minimum $ 49.14.

EOS

EOS/USD has tried to consolidate above the resistance line of the corrective corridor, but thanks to the general short-term "bearish" sentiment of the market, EOS has returned to the former corridor.

Although before the implementation of the current movement, the market warned of a possible decline. First, Stochastic and MACD formed a divergence, then the short-term growth channel support line has broken, and only then the general mood of the market increased the decline.

The current downward momentum is directed to the support level at $ 5. In case of its breakdown, EOS will go to the breakdown of the main low - $ 4.17, and later - and to support the projection channel at $ 3.65.

DASH

DASH/USD rushed to the mark of $ 180, after the divergence on the indicators MACD and Stochastic, as well as the breakdown of the support line of the previous channel. The latter represents the target line of support for the projection channel.

After breakdown of this level of quotation will aim at fractal support near the level of $165, and further — for the main minimum of $130,97.

Zcash

The technical picture on Zcash on a three-hour taymfreym shows development of the descending impulse to the line of support of the relevant channel of growth. In this case decrease was expected, but is obvious not at such speed.

Pointed to a possibility of decrease both approach of quotations on the test of resistance, and divergence on Stochastic. The impulse of decrease has been directed to support level $133. But until he is punched, to talk about development of the next impulse of decrease prematurely.

The situation can end with a release from support and formation of an impulse of growth to the line of resistance about the level of $169. Breakdown of a mark of $133,00 will allow quotations to decrease to the projective canal to support for $104. Formation of "A black cross" on MACD can become the confirming factor for such scenario.

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